On Tuesday, the global stocks jumped initially as investors ignored concerns over a trade war between the United States and its trading allies – China, Mexico, Canada and the European Union. But during the New York session, bears took control as trade war tensions still remain in check.

The US is due to begin inflicting tariffs on Friday on $34bn worth of imports from China. Thing is, Trump is trying to make Chinese products costly for the U.S. consumer so that US citizens start buying locally manufactured goods. Anyway, the uncertainty is putting a bearish pressure on SPX and DAX.

Today, the volume is likely to be light as the U.S. investors enjoy the Independence Day holiday. Keeping the US holiday and July 6 in mind, the major players are on the sidelines and may look for the actual outcome before placing any real big trade. 

Here are the key trading levels to watch for S&P500 and German30 this week:

S&P500- SPX- Trading Levels

Support       Resistance

2698.15       2739.49

2685.39       2752.25

2664.72       2772.92

Key Trading Level:    2718.82

German30 – DAX – Trading Levels

Support     Resistance

12151.44       12468.1

12053.62      12565.92

11895.29      12724.25

Key Trading Level:    12309.77