Nasdaq Surge Exceeds Tariff Sell Off

The Tariff discount is over - maybe it will reappear - but markets appear to think a return to punitive tariffs is over. We have the Nasdaq leading the way. For the Nasdaq, the rally off its low managed to slice through all major moving averages, with the next challenge its February high. Technicals are net positive and extremely strong, with volume surging in net accumulation.

The rally in the Russell 2000 stalled out at the March high, and below the 200-day MA. While the volume trend is positive, trading volume has returned to its pre-April panic level capitulation. The index is underperforming relative to the Nasdaq, but it's not bad thing.

The S&P made it past is March swing high, like the Nasdaq, but is underperforming the S&P. Buying volume is strong, having managed a new swing high, suggesting any retest of the April swing low is looking highly unlikely. This leaves a break of the February high as the only next step.

Breadth metrics are more positive. The percentage of Nasdaq Stocks Above their 50-day MA has surged well past highs of the last six months. Expectations would be for the parent inex (Nasdaq) to do likewise, so this metric is very bullish.

It's a similar story for the Nasdaq Summation Index and Bullish Percents, both of which have broken their bearish trends.

p>The only one to slowly turn is the Percentage of Nasdaq Stocks above the 200-day MA. It reached March swing highs on net positive technicals, but still has a long way to go before challenging the January highs.

Markets are looking far more positive than they have in quite a while, even from before Trump's announcement of his tariffs. Short term, things are looking a little toasty, but any downside should be viewed as a buying opportunity.

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Investments are held in a pension fund on a buy-and-hold strategy.

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