The S&P 500 cash index violated the wedge on the downside on 05/03/2018, but the next day it promptly reversed the direction. The failure to bust the wedge on the downside brought out the daily cycle that its cycle low was made on 05/03/2018. Right now it is still trading
Intel and Microsoft both had a blowout earnings report, it didn’t matter. The market couldn’t sustain the overnight rally and it was sold off during the day session. The market is at a serious cross road. It is contemplating a host of issues.
The stock market is stuck in consolidation. The fundamental news continues to be negative, but the selloff has been less severe considering how negative the news has been. The trade war in the tech sector is a real concern. The full-fledged trade war will for sure destroy the world economy.
On Friday April 06, the current administration talked harshly against China about the trade imbalance. They even showed openly that they didn’t care about the market selloff. It really makes you wonder if the white house wanted the market to go down for the first half of 2018, so
It’s been volatile 9 weeks since the 01/26/2018 high was made. The market closed the month of March and first quarter both on the weak side. It is stuck in a neutral position. The 200 day moving average supported the selloff twice. Is it over?
