Today is going to be a key moment for the markets as we’ll see whether Trump deals a China deal or not. I’m hopefully that he will, but I’m fully prepared to adapt to what will be new market conditions going forward if he does not.
I’ve pointed out how the GDX has a triangle pattern on it earlier this week. Well so does the S&P 500 and many other ETF’s at this moment too.
If the market closes above 2950 it will breakout to the upside. Then you can look for a simple continuation of the market environment we have been in now for the past few months to continue probably into the end of the year.
But if it breaks down here to close below the 200-day moving average than watch out as the environment will get more negative for most stocks and sectors. Money will flow into defensive assets and stocks though if that happens so there will be ways to still make gains buying things.
It’s all going to depend on whether Trump does a deal or not today – and how the market acts to it. The chart is lined up in an indecision pattern the past few days that should be resolved by today’s close.
No matter what happens this is going to be an interesting day for traders as I talked about with Chris Vermeulen.