Stocks Shake on Tariff Delay Take-Back: S&P 500, Nasdaq Analysis
By: James Stanley, Sr. Strategist
Key Points:
- Massive volatility with significant gaps observed.
- Initial reactions to a proposed 90-day tariff pause sparked aggressive trading.
- Trump administration’s quick retraction created further market fluctuations.
Summary
This week has brought intense volatility in the stock market, primarily driven by rumors and news concerning tariffs. While a temporary relief seemed likely with a possible tariff pause, the Trump administration's walk-back has led to subsequent reactions from traders. The market was quick to react, showing a gap down initially followed by a rally.
“The initial gap down has quickly transitioned into a more complicated picture of higher-lows, indicating resilience in the market.”
Opinion & Analysis
Market sentiment remains precarious as traders navigate through the chaos of headlines. With the S&P 500 currently at the 50% retracement of previous major moves and showing signs of recovery after hitting support, swing trading opportunities could arise. However, caution is advised as the market remains susceptible to sudden shifts in sentiment based on new developments. The desire for profit-taking might lead to a short-squeeze scenario.
S&P 500 Analysis
A glance at the current S&P 500 shows considerable activity at major retracement levels. With the daily high hovering around 5286, this level serves as a critical point for traders aiming to gain a stronghold. Keep an eye on the 5537 level as a potential resistance that could shift market dynamics significantly.
Nasdaq Insights
Similar support can be seen in the Nasdaq, where markets are also adjusting to a significant bounce. Yet, the challenges remain with resistance levels set at key Fibonacci retracement points. Anticipate substantial movements as bulls strive to penetrate these barriers.
Market Charts
Stay tuned for further updates as the impact of these tariffs ripples through the markets!
