The US indices are fighting back. Despite the supposed “sell America trade”, the US stock markets continue to show extreme resilience to the noise and fearmongering.
The Nasdaq 100 has been pretty noisy and lively during early trading here on Monday. Initially breaking below the 50-day EMA only to turn around and show signs of strength again.
We continue to see a lot of questions asked about the “sell America” trade, which, quite frankly, I don’t see playing out. It looks like we’re just stuck in a range here as we head into major earnings calls. Sideways would be the verdict here.
The Dow Jones 30, of course, did gap lower, but now finds itself above 49,000 again as it looks like it’s going to try to do everything it can to continue to the upside. The 50-day EMA offers support.
50,000 above for me is an important target that I think a lot of people will be paying close attention to, but we’ll just have to wait and see how that plays out. Either way, I do like the idea of buying dips in this market as it has been so resilient since April of 2025.
The S&P 500 gapped down to touch the 50-day EMA right at the open on Monday, but it has turned around completely since then. I think all this tells us is that the market is not ready to make huge changes right now.
Quite frankly, we’ve been sideways for a while and I think we remain sideways for the time being. That being said, we are getting ready to go into some heavy corporate earnings over the next week or two and that could change things obviously, but the geopolitical situation really doesn’t seem to have much of an effect—at least nothing that lasts more than a few hours here and there.
Sometimes it’s what the market won’t do that’s the clue. In this case, I think that’s exactly what we are looking at. We’re looking at a market that just doesn’t have any interest in falling long-term.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.