Fear, what fear? DJIA recoups roughly 900 points from its pre-opening low

• Wall Street plummeted ahead of the opening on escalating tensions between China and the US.
• US indexes changed course after the opening, surpassed Thursday's highs.

US indexes staged an impressive reversal this Wednesday, with the three major indexes closing with gains, despite risk aversion sent them sharply lower ahead of the opening. The Dow Jones Industrial Average traded over 600 points lower to finally close the day up 230 points at 24,264.30. The Nasdaq Composite and the S&P added over 1.0% each, to close at 7,042.11 and 2,644.69 respectively.

Following US Trump's announcement on Tuesday to impose 25% tariffs on $50 billion of annual imports from China, the country stroke back,  by announcing similar tariffs on over a hundred US products, this time, including soybean, aircraft, and cars.  US President Trump tried to pour some cold water on the issue, stating that " we are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S." It is unclear what helped equities to bounce, but one cause be hopes that all this escalating back and forth could end with tariffs never actually materializing.

Dow Jones Technical Outlook

At the end of the day, the DJIA is trading around Thursday's high, roughly 900 points away from its intraday low. In the daily chart, the index has settled above a bullish 200 DMA after struggling around the indicator during the past two weeks but faces a strong resistance now at around 24,354, where it has a bearish 20 DMA. Beyond the level, the recovery could extend toward 24,447, the high established on March 27th, ahead of the 24,500 region. Below 24,242, the risk turns back south, with the next intraday supports at 24,180 and the 24,100 region.