The market ended the week the way it began the week, with a big sell-off on more tariff news. While Monday’s sell-off was brought on my tough talk from the Chinese, Friday’s sell-off came after President Trump asked for consideration of another $100 billion in tariffs against China. This appeared to overshadow a weak jobs number of 103,000 vs. estimates of 175,000. And so, the trade war of words continues to heat up, creating uncertainty that the market obviously doesn’t like.
As I’ve written in recent reports, this all creates a highly news-oriented environment that makes for a virtually non-investable market. The NASDAQ Composite Index declined over -2.28% on Friday as volume picked up, looking like it may be set for a test of its 200-dma. This, of course, may depend on what the weekend tariff news looks like come Monday morning. Technically, the NASDAQ remains in a four-day rally attempt off the Monday lows as the overall downtrend from early March remains in force.
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