MarketSurge powers the charts in this video.
The market is finally realizing that the current administration is not bluffing about tariffs and it is pricing the potential negative consequences. QQQ tested its YTD lows near 500, even briefly flushed below, and then found buyers. If it keeps rallying early next week, it will likely encounter resistance near 510. If it goes above 511, it is likely to test 520. Going back below 500 will open it up to a test of 490-480.
Corrections are a normal part of every trend. The current pullback is a correction within a bull market. It will likely end sooner rather than later and offer great entry opportunities for swing long positions. In the meantime, we have to remain tactical, protect capital, and capitalize on shorter-term market moves – both short and long.
Financials showed notable relative strength last week. XLF closed near all-time highs led by Berkshire, Visa, Mastercard. The deregulation will be a huge tailwind for the financials industry and we are seeing it in market rotation. Over the weekend, Trump gave more specifics regarding the Strategy government fund, which led to a big rally in crypto-land.
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