The market got blindsided by the Trump Train on Thursday when late in the day a headline crossed indicating that the President was going to move ahead with tariffs on an additional $200 billion of Chinese goods and services this coming week. The market took a small hit in the last hour or so of the trading day but did not come entirely unglued.
Ahead of the three-day Labor Day Weekend, a continued flow of uncertainty regarding the trade talks between the U.S. and China had the indexes spinning to and fro. By the close, however, the only bit of certainty was found in an announcement that the two sides would continue talks on Wednesday. No deal, but no busted deal, and so the indexes all rallied back to the upside to cut their losses and, in some cases, close positive.
Despite all the news noise, the NASDAQ Composite Index daily chart just shows an index that is consolidating its recent move to new highs in normal fashion. Tight sideways action ended the week as volume dried up, which so far looks constructive despite some stalling off the intraday highs on Thursday on higher volume.
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