President Trump to meet with Chinese Vice Premier. With the two sides reportedly making significant headway in addressing key structural hurdles including technology transfer and intellectual property, President Trump is reportedly meeting with China’s top trade negotiator this afternoon. The news is buoying global markets and underpinning hopes for a large-scale deal in the relatively near term; consequently, a setback would almost assuredly trigger more volatility with recent economic data highlighting the already-negative impact the tensions are having on world trade.
The win streak is over. The Nasdaq 8-day win streak ended yesterday, while 3-day win streaks ended for the S&P 500 Indexand Dow. Technically, the S&P 500 continues to trade above its 200-day moving average, but many short-term indicators are quite overbought. Bigger picture, new highs on various advance/decline (A/D) lines shows that there is significant participation in this move off of the December 24th lows, so any pullbacks could be used as opportunities to add to equity positions.