Resistance along the highs last week turned into a big sell-off yesterday as the NASDAQ Composite Indexes slashed through its 50-dma. The S&P 500 and Dow Indexes, however, held support at their 50-day moving averages.
This was due to the fact that President Trump appeared to take a hard line on China trade in his speech to the U.S. General Assembly.
While the news regarding the Democrats’ latest attempt at impeaching the President takes center stage, I think the more important news is coming on the trade front. To that end, another insinuation from the President that a deal with China “could come sooner than you think” got the indexes rallying, but this is likely just more of the same type of hint and insinuation that is of no real substance.
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