News that the US and China were exploring a trade agreement behind the scene triggered off a
relief rally today, with the SPX rallying off the 200 day m/a trend support. Traders also liked the
double bottom on closing lows. SPX Daily
We will just have to see whether the two parties can up with a suitable compromise. In the mean-
time you can watch to see if the SPX can rally enough to reverse downtrends in the 25 day ma, and
the RSI, MACD and trend indicators. You need to take care here because the first attempt to 'buy
the dip' in early Feb. did not work, with this indicating a loss of the level of high confidence we
saw throughout last year and into Jan. of '18.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!