Weekly Chart Review
Tariffs - Here we go...
Full disclosure: It’s almost 10:00 p.m. on Sunday night, and I’m just now sitting down to put together this week’s newsletter (this is not how I typically roll).
It was a crazy busy week and an even busier weekend. It was all good stuff, just life with a family and raising three kids.
With that said, I hope you will forgive me, but this week’s newsletter will be shorter than usual.
If you even remotely follow financial news, you’ll know that over the weekend, President Trump initiated tariffs on Canada (25%), Mexico (25%), and China (10%).
Looking a futures, the S&P 500 and NASDAQ are currently lower by -1.86% and -2.47%, respectively. Unless something happens overnight, equities look to open fairly substantially lower on Monday morning.
The key question on everyone’s mind is “How low can equities go?”
Let’s look at the S&P 500 and NASDAQ through the lens of market structure and see if we can glean any insight.
Here’s the good news.
Both are currently in an uptrend.
Both have already pulled back (Sunday night futures levels) to key areas of support (blue boxes).
If the support holds (still questionable), both are set up to trade higher from current levels and potentially break the highs from January 24th.
Now the bad news.
If the S&P 500 falls below 5,809 and the NASDAQ falls below 20,694, all bets are off.
S&P 500 (ES) - Daily Chart
NASDAQ (NQ) - Daily Chart
It is close to impossible to handicap what Trump will or will not do regarding tariffs.
Will concessions be made in short order to stop the bleeding or will this play out over a matter of days, weeks, or even months? I don’t think anyone knows.
Sometimes, it’s better to just sit still and let things play out for a day or two before reacting.
Feel free to reach out (i.e. reply to this email) if you have any specific questions or if I can be of assistance.
Let’s make it a good week and keep your head on a swivel.
Take care,
Jim Colquitt
The Weekly Chart Review is a publication of Skillman Grove Research.
All opinions and views expressed herein are based on our judgments as of the date of writing and are subject to change at any time.
The content of this newsletter is for educational purposes only and should not be construed as investment advice.
Investing involves risk, including loss of principal, and past performance may not be indicative of future results.
Do your own research and where appropriate, seek the advice and counsel of a reputable financial advisor.
Thanks, Jim. Your charts are a work of art :)
Have a good week.