Don’t get fooled by a bounce.
Team Trump softened their tone over the weekend, leading Asian stocks to move back up and Europe opened up over half a percent and our Futures are up half a percent but now Trump has undone the weekend’s diplomacy with this morning’s tweet calling China “STUPID TRADE” that has been “going on for years.” Hey, maybe it is a brilliant negotiating strategy where the President ACTS like an out-of-control lunatic so the Chinese will submit to “reasonable” requests from his underlings. Or maybe he’s just insane or maybe he’s a Russian agent working to undermine 50 years of relationship-building between the US and China?
Meanwhile, we’ll be watching the S&P closely, especially around our 2,640 line to see if it holds tomorrow (today is meaningless) and we’ll be looking for the same bounce lines we were looking for last week (and all of March), which are:
Dow 23,800 (weak) and 24,200 (strong)