It has been several weeks since there were talks that President Biden is expected to roll back some tariffs on Chinese imports soon, and according to WSJ's Report, he may announce the decision as soon as this week. What does it mean for the Market? Let's take look into Fundamental and Technical Analysis.
The Office of the U.S. Trade Representative is conducting a mandatory four-year review of the Trump-era tariffs. A comment period for businesses and others who have benefited from the tariffs will close on July 5, allowing the administration to calibrate its policy.
Possible steps include raising tariffs on strategic items such as industrial machinery and transportation equipment while lowering duties on consumer goods. The U.S. also could start a fresh investigation under Section 301 of the Trade Act focusing on China’s industrial subsidies on high-tech items, a policy the USTR has been preparing for months, The Wall Street Journal has previously reported.
Such a policy could lead to tariffs on a new set of products.
As I discussed in my yesterday's article, the market is ranging in the same range since June 13, looking to make a significant move very soon. usually, the trigger for such a move is a major catalyst. The announcement of easing Tariffs will have a warm welcome from the market and could be the catalyst that the market waited for.
In eyes of Technical Views, I could see the $NDX run as high as 12586, but before it has to break the levels of 11750, 12030.26, 12182, and 12354. $SPX I would look for 3900, 3950, 4000, and 4040.
Please don't forget that FOMC's minutes on Wednesday which could ruin the party. In addition, we have CPI June Data next week. let's trade carefully and watch levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers should conduct their own research when making a decision. The views, thoughts, and opinions expressed here are the author’s alone.