Bessent Takes the Wheel as Trump Softens

Trump Backs Off on Powell firing and China tariffs

Recap

❌ With Trump backing off on the tariffs and Bessent taking over and meeting with key investors the market retested SPX 5500.

Since we got a weekly close above SPX 5500 and shift in macro headlines, it is highly unlikely for the market to sell off further.

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New 52-Week Highs vs New 52-Week Lows

• NYSE New 52-Week Highs: 23 vs New 52-Week Lows: 3

• Nasdaq New 52-Week Highs: 7 vs New 52-Week Lows: 56

McClellan Oscillator

Interesting Nasdaq still saw more New 52 Week Lows than Highs even this chart

McClellan Volume Oscillator

Has recovered to very bullish levels

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Posts of Interest

The market has been focusing more on Bessent while Trump backs off.

He also said something important that the markets really liked:

"I wish to be clear: America first does not mean America alone. To the contrary, it is a call for deeper collaboration and mutual respect among trade partners."

I think Trump will let Bessent run point for now and then Trump will likely insert chaos again.

China is not backing down and insisting on the US to drop all unilateral tariffs before they will entertain serious negotiations. US-China trade negotiations do not seem to have officially started just yet as they are denying Trump’s claims.

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Forecast

We’re now back to Fear from Extreme Fear.