Hank Tough - Long ride down to 4,514 for US500Even with better than expect numbers with NFP.
The matter remains that the world is not on great terms with MAGAs Tariff plan. Tariffs are in an indirect way a threat when it comes to trade wars.
Because, there'll need to be reciprocals and larger measures to make up for the mess.
Apparently, the calculations of the tariffs was to make up for the trade deficit, but it means that there'll need to ACTUALLY be the same amount or more of exports - which we know won't happen as there are two types of goods.
Elastic - Where the price and demand and supply changes.
Inelastic - where they a don't change much.
Right now there is a LARGE Inverse Cup and Handle forming on the daily with the price below 20 and 200 - showing strong downside to come.
So, we can expect looking at the pattern to continue to 4,514.
'Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Thoughts?
Shortus500
Another 682 point crash for S&P500 to 5,130?It's been a brutal year so far with the Trump Presidency.
And it's been a rough year for the S&P 500, dropping from 6,149 to 5,811.
The main culprit?
Political instability in the U.S.
The current administration’s unpredictable decisions, sudden tariff hikes, and policy shifts have left investors uneasy and consumers lacking confidence.
Here are six executive orders that have dragged the market down:
Tariff Hikes on China, Mexico, Canada and Europe –
Higher import costs hurt U.S. businesses, especially in tech and retail, slashing profits. Remember imposing tariffs are one thing but there will be retaliatory action.
Environmental Rollbacks –
ESG investors pulled back, hitting energy and industrial stocks.
Work Visa Cuts – Tech and healthcare struggled to hire, slowing innovation.
Healthcare Subsidy Cuts – Uncertainty in insurance and pharma led to stock drops.
Also with the cutting of USAID and with turbulence with WHO this isn't helping the situation
Trade Agreement Pullouts – Supply chain chaos hurt multinational corporations.
ALso with the cutting ties with Ukraine and now with the UK prohibiting funding to the Ukraine (latest on)
With shaky policies and no clear direction, market confidence is shot. Until stability returns, expect more turbulence.
With the price action, it is possible to see this M Formation play out for the SP500.
And it is looking bad, really bad - not great - In Trump's voice.
M Formation
Price<20MA
Needs to break <200MA
Then the next target will be around 5,130...
Let's actually hope I am wrong this time and something miraculously happens to pump up the market again.
We can take advantage and short stocks, indices etc... But there is a moral issue involved with wanting the market to crash. Remember that.