- Well, it’s been an interesting day during the trading session on Wednesday as NASDAQ 100 is now up about 11 % in the middle of the afternoon.
- It’s worth noting that Donald Trump has paused a lot of the tariffs for most of the world, except for China, except for the 10 % that was going to go across the board.
- So, the market has exploded to the upside. At one point we were actually down well by over a percent.
Ultimately, this is a market that is now going to threaten the 19,000 level. And I think this is going to set up a very interesting fight right around this area. After all, tariffs in the Chinese part of the equation now are 125%. So, the Americans levied tariffs. China brought theirs up. They’ve always had tariffs. The Americans levied more tariffs, the Chinese levered those up, and now Trump has come back with another round of tariffs. So, we went from 104 % to 125 % in the last 24 hours on Chinese goods.
Someone Will Lose
This is going to end poorly for somebody, but right now it looks like money just came flying back in the United States, or at the very least, we’ve seen a lot of short covering come back into the market. So, at this point in time, the market is likely to continue to see a lot of trouble just above, and we are approaching a previous uptrend line, which could now offer resistance. That being said, I think what very well could be a situation to monitor is how bad things get between the United States and China, because if they really get bad, you could see this short term rally kind of fizzle out. And it wouldn’t surprise me at all. If we can break above the 19,500 level, then it’s very possible that NASDAQ will go screaming to the upside. That being said, with the ferocity and speed that the market has rallied during the trading session. I think you have to assume most of this is short covering, and you certainly can’t chase it here.
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