With trade war rhetoric declining, markets are showing signs of consolidation and retrenchment. The SPX appears to be setting up a strong support level at 2700 or so. This bodes well for the bulls out there, as the setup shows signs the January highs could be taken out in the coming weeks.
At this point the SPX has climbed above both the 50, 100, and 200-day moving averages. Small cap indexes have also started moving more aggressively to the up-side. Both are good signs that the risk-on trade may be back in vogue.
The SPX 100-day moving average is actually higher than the 50-day. If these two averages flip (with the 50 above the 100) that is a potential confirmation the markets are gearing to take out January high water markets.
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