Hong Kong’s Hang Seng Finished Up 3.9% and U.S Indices Follow.
Slight weakness ensued ahead of the long Labor Day weekend and for good reason; outside of upbeat jawboning from both the U.S and China, there was absolutely no evidence the two sides had taken any real steps forward since announcing new tariffs on Friday, August 23rd.
What a week, the S&P is 4.5% off the Sunday night low and the FOMO melt-up is engaged.
U.S benchmarks are surging higher. The tables turned through yesterday morning after major three-star support held a retest at 7:00 am CT. Freshly upbeat rhetoric surrounding U.S and China trade has added a tailwind to yesterday’s trading session.
U.S benchmarks reversed early gains yesterday and the S&P finished more than 1% from what is now a psychological ceiling at 2900. We noted here in the first half of the week that nothing ultimately changed from Friday’s news of fresh tariffs escalating the trade war.
U.S benchmarks are clinging to yesterday’s recovery, but trade war uncertainties persist. We maintain the belief that this market is not thriving on bad economic news anymore, in fact, we believe recessionary-like data will encourage selling.
U.S benchmarks are snapping back from Friday’s bludgeoning after President Trump said China called him to restart trade talks and work towards a resolution. Although China has denied such a call.
U.S. benchmarks trading lower after China implements 10% tariff on crude oil.
U.S benchmarks are lingering at the highest level in a week, a crucial area of technical resistance. Looking at 2950 level to the upside in S&P 500.
 U.S benchmarks are bouncing back from yesterday’s dull session. Price action achieved a strong wave of technical resistance Monday on the heels of three straight days of sharp gains.