The action today is a bit more bullish than bearish. Traders tested both ends of yesterday’s range, but the turn at the low came higher than yesterday’s low, so that gives a small hat tip to the bulls. The chart has some volatility to it, but the bottom is rounded.
There have been some nice trades in the trips back and forth today – but the trend remains sideways until it isn’t. Essentially, yesterday and today are almost inside days from Tuesday (depending on whether you are looking at cash or futures), so it amounts to a trading range.
In our ongoing Chinese saga, the Australians just canceled their order for French submarines in favor of U.S. nuclear subs. This will be the second country we have allowed to have these subs – so it is a rarity. Great Britain was the first. Understandably, President Macron is furious in France, but it underscores the rising tensions over Taiwan in the region.
We need to keep a close eye on the Taiwan issues, and perhaps Ukraine in Russia. Our adversaries will make their move when they perceive us to be weak. The disastrous Afghanistan exit has exacerbated the risks.
A.F. Thornton