This is a market that should be consolidating quite comfortably between 2700 and 2740. However, headlines continue to cause major problems trading the markets, as tariffs are now being levied against the European Union, Canada, and Mexico. 25% tariffs on steel, and 10% tariffs on aluminum. The EU has already said that it is going to retaliate, and at this point I think it’s hard to tell where this market goes next, because it is driven on pure emotion at this point.
I still look at major selloffs as a potential buying opportunity, but I also recognize that we may be better served to sit on the sidelines in the short term. I think that the market will continue to be one that is very emotionally driven, but I think that the overall attitude will remain skittish at best. In other words, if you have profit you will probably need to take them as quickly as possible. In that type of environment, it’s probably better to find other things to do than trade a stock market that is moving on tweets, comments, and conjecture at best. Fundamentals and technical analysis tend to fall short in the situations.