In my last post on Tuesday I was looking at possible rally options from the current 2025 lows, and was looking for a rally lasting at minimum a week or two to make right shoulders on the possible H&S patterns that may be forming on SPX, QQQ and DIA here.
Getting a rally that lasted that long was seeming somewhat doubtful on Wednesday morning but then the highest tariffs were delayed for 90 days and a window of opportunity opened to see that rally.
How much of a reprieve was this tariff delay? Well the existing tariffs already in place before April 2 are still in force against Mexico and Canada, the 25% worldwide tariffs on steel and aluminium are in place, and the 25% worldwide tariff on cars and car parts imported into the US announced before April 2 remains as well. Of the other April 2 tariffs, all have been cut to 10% except the tariffs on China, with the US and China now in a full trade war. The White House has made it clear that a minimum tariff of 10% will now be levied on all trade partners indefinitely with rare exceptions that may be negotiated.
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