LIVE MARKETS-Nasdaq composite gap may beckon after latest Trump tariff salvos

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NASDAQ COMPOSITE GAP MAY BECKON AFTER LATEST TRUMP TARIFF SALVOS

Amid renewed uncertainty, the CBOE market volatility index .VIX is jumping, and U.S. equity index futures are sliding in premarket trade on Friday.

U.S. President Donald Trump recommended steep 50% tariffs on the European Union, starting June 1. Additionally, he warned that Apple AAPL.O would have to pay a 25% tariff if phones sold in the U.S. are not made within its borders.

E-mini Nasdaq 100 futures NQcv1 are down more than 1.5% suggesting the Nasdaq composite .IXIC is poised for a sharp opening loss.

This has traders checking their charts for support:

The composite ended Thursday at 18,925.735.

On weakness, traders will be eyeing the May 12 gap, which runs from 18,472.71 down to 18,068.90, as a likely magnet.

That said, bulls will look for this zone to potentially provide fertile ground for a resumption of the advance.

This zone also includes the 200-day moving average (DMA), and the Fibonacci-based 233-DMA, which now reside in the 18,400-18,315 area, as well as the March 25 high, which was at 18,281.13.

The 50-DMA ended Thursday at 17,535.

In the event the composite is able to stabilize and ultimately reverse above Wednesday's 19,241.41 intraday high, it can take aim at its 20,204.58 record intraday high. Though, the resistance line from that December peak, which now comes in around 19,850, may prove be a tough hurdle on its own.

(Terence Gabriel)

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