SP500: The S&P 500 broke out after China exempts some U.S. imports from its 125% tariff rate

The S&P 500 surged for the fourth straight day on Friday, breaking out of the downtrend channel, to close above the correction level (5,502.69) after several media reports of China exempting some U.S. imports from its 125% tariff rate. Be aware that the Chinese Foreign Ministry said a day earlier that China has not been engaged in any talks or negotiations with the U.S. on tariffs.

The bottom may be in, pending the release of big tech earnings, plus reports of U.S. inflation data and U.S. payrolls, next week. Also let's hope that Trump will not come up with any other ideas on tariffs so the index can stay out of correction levels.

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!


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