S&P 500: Breaks Out Of Channel, Steps Into A Correction

Group 1 - The core issue affecting the market is the potential reintroduction of tariffs on China by Trump, following China's restrictions on rare earth metals, which are vital for the tech sector [1] - The market typically reacts strongly to such news initially, but tends to stabilize afterward, indicating a possible temporary sell-off [2] - Despite the significant drop in stocks, the dollar index did not exhibit the expected sharp increase, suggesting a complex market reaction [2] Group 2 - The current market situation is characterized by a wave four retracement, indicating that any potential recovery may only be a temporary rally [2] - There is an open gap lower on futures, which could indicate further volatility ahead [2]