I reckon there was a short squeeze last night amongst the pause on tariff news. Don't fall into the trap of going over-exposed in longs until we get a change of market structure back to the upside. Trend changes come with huge volatility.
Across Facebook, X, and in person, I have seen and talked to way too many people asking how to buy stocks. Bad sign IMO, retail are wayt too bullish.
Bonds have been dumped, most likely by the Chinese, over the last couple of days. Maybe this forced Trump's hand to pause tariffs until he can get the Chinese situation sorted?
5,650 break and backest on SPX will grab my attention, but I'm not interested until then.
I say be careful because this move seems like a major overreaction to the upside. Tariffs have still been applied, China have raised theirs again and in kind so have the US. A massive amount of trade comes from China, so I'm dazzled that the market has responded so strongly merely to a pause.
Bad smelling fish all around. Be careful out there.
