Technicals Support the Market
U.S.-China trade tensions have ratcheted up again following President Trump’s decision to level tariffs on the remaining $300 billion of U.S. imports from China. Combine that with China’s decision to let its currency (the yuan) weaken past the 7 per dollar level, and investors may be more concerned than ever that global tensions could drag down the economy and stocks.
From July 26 through August 5’s close, the S&P 500 Index lost 6%. Even though stocks have rebounded the past few days, we remain several percentage points off the highs. While heightened volatility may be here to stay, technical analysis sugges... Read more