Things started to get a little sloppy over the past two trading days as the indexes gapped down on Thursday after comment from Chief Trump Economic Adviser Larry Kudlow intimated that the U.S. and China were still far apart on coming to a trade agreement by the March 1st deadline. The pullback, however, was logical given the position of the S&P 500 and NASDAQ Composite Indexes which were running right up into their 200-dmas.
In Wednesday’s report I said that I would not be surprised to see the indexes pull back from this position, and Thursday morning’s news gave them just the excuse they needed. On Friday, things again looked wobbly, with the Dow Jones Industrials Index breaching its 200-dma earlier in the day. But volume lightened up, and the index regained the 200-dma in its second day of successfully testing the line.
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