China should be well aware that America is postured for a proper fight. We recently hit ATH and is showing a solid economic foundation. (Unemployment rate, GDP). China, on the other hand, showed a mediocre GDP growth and an unprecedented drop in exports. They can't afford to lose any more export growth to the U.S.
If they choose to retaliate with half-assed tariffs, we will prevail in the long term. The market will correct to either 280 or 272 levels. Most likely, given the short time-frame, China will either cave or negotiate another stall-out, which should send us upwards to at least 290.
Coincidentally, TA is showing a move up tomorrow. Any proper move down will come when a proper ATH is hit, TP: 296-303.
We will recover, for now.
If they choose to retaliate with half-assed tariffs, we will prevail in the long term. The market will correct to either 280 or 272 levels. Most likely, given the short time-frame, China will either cave or negotiate another stall-out, which should send us upwards to at least 290.
Coincidentally, TA is showing a move up tomorrow. Any proper move down will come when a proper ATH is hit, TP: 296-303.
We will recover, for now.
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