SP500: The market could stay in correction territory as Trump is waiting for China to blink


The S&P 500 is retesting the April 2024 low resistance on Thursday after Trump signaled that the tit-for-tat China tariffs may be near an end, per Reuters' report. It doesn't look good though. Over the weekend, China returned a brand new Boeing jet back to the U.S. Earlier in the week, China said that it had halted all U.S. jet deliveries, worth about $40 billion, as part of Trump's trade war. The market downtrend remains intact as the odds for a recession caused by Trump's trade war rises.

The U.S. GDP Q1 forecast by the Atlanta Fed is -2.2% as of April 17. Keep an eye on the 2Y treasury yield, it just broke its 600-day EMA. In the past 25 years, all three US recessions occurred after the 2Y treasury yield dropped below its 600-day EMA.

This note contained herein is our opinion and should not be construed as a recommendation to buy or sell. Click here to view the latest update!

Comments

Post a Comment

Popular posts from this blog

TESLA INC. (NASDAQ:TSLA): Tesla stock took a deep dive after UBS lowered Q1 EV delivery and gross margin estimates

Image
  Tesla stock tumbled over 15% on Mon day after UBS lowered their Q1 EV delivery estimates from 437k to 367k. UBS now sees Tesla's gross margins shrinking to 10.3%, compared to 16.4%, during the same quarter a year ago.  The bearish "lower-lows" chart pattern resumes after the stock broke the shoulder of the "head-and-shoulders" chart pattern at the end of February , with the price target of $194.81 . Coincidentally, a 60% pullback from its high is $195.42. This note contained herein is our opinion and should not be construed as a recommendation to buy or sell. Click here to view the latest update !
Read more

TESLA INC. (NASDAQ:TSLA): UPDATE - Tesla stock's downtrend is still intact / Sell $TSLA/Buy $BYDDF

Image
  Tesla stock is under selling pressure after BYD announced on Tuesday that the company will offer its free automated driver assistance system (ADAS) in China on their 21 models. It looks like the smart money is moving out of $TSLA into BYD (OTCPK:BYDDF). BYD stock has already been up 46.27% YTD while $TSLA is down 16.44%. From a technical viewpoint, Tesla stock's downtrend is still intact with t he price target of $288.39 after a descending triangle chart pattern breakdown on February 5 . Keep an eye on the trendline support ~ $314. A breakdown could mean that Tesla stock's post election surge has completely evaporated. This note contained herein is our opinion and should not be construed as a recommendation to buy or sell. Click here to view the latest update !
Read more

BITCOIN (BTC/USD): Bitcoin continues to be stuck under the 30k/30.9k levels

Image
  Bitcoin has been trading under the 30k/30.9k resistance level since April and is going nowhere as these resistance levels seem to be too tough to break. Let me repeat my last post on June 21 that the rally could continue if Bitcoin can break the key 30k/30.9k resistance level. It's starting to look like BTC could pull back to retest the 27.6k support, though. This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!
Read more