Save some powderIf you'll recall, tariffs were originally scheduled to jump to 25% at the March 1st "deadline"... despite the show of good faith to keep them at 10% around the end of Feb, the market sold off anyway trying to challenge the 282 resistance. Now here we are at ATHs, tariffs are going up, and trade talks are all of a sudden not sounding very friendly... should we be surprised at all to see a selloff of equal magnitude?
In my previous posts I've pointed to gap fill at 288.30. I still think we'll hit that level some time this week. In fact I think there's a good chance that level is breached if the Chinese suddenly decide to go tit for tat w/ Trump.
Even tho the hourly RSI painted some bullish divergence, the reading today on the bounce was actually really weak compared to price action. But more importantly check out that daily MFI... it's at its lowest levels since the 1st week fo January, yet we closed right near the prev ATHs. Once that daily MFI punches below 30, it's time to start thinking about BTFD.
