clawed its way back from the worst of May's losses and turning positive for the week as of Thursday's close. Markets had taken a sharp turn lower earlier this month as the U.S. and China hiked tariffs on one another and kept a trade deal out of reach.
Despite the reprieve, NorthmanTrader founder Sven Henrich said Thursday the underlying technicals tell a different story. Indeed, futures prices on the three major indexes were projecting lower openings Friday morning. "When we look at the charts, we have to recognize that markets may be in the process of repeating some of the sins of the past that we saw last year," Henrich said on CNBC's "
. " "We had an incredibly powerful rally, especially on the [Nasdaq 100] that created rising wedge patterns. This was exactly the same pattern we saw last year that ultimately broke to the downside.", which mimics the price action on the Nasdaq 100, had rallied nearly 30% from its Christmas Eve lows to the end of April. Since hitting a record high on May 1, it has pulled back more than 3%.
"We got the first initial correction of 2019 about 5% on the S&P, 6% on the NDX. In general, it's kind of a smaller pullback but it packed a pretty good punch because we also saw a big breakout in volatility, so it structurally looks almost like a repeat from last year and last year obviously we saw a lot of chop for a few weeks before we saw another leg lower," he said.is also forming some bearish patterns, including two broken rising wedges.
This has happened to far ahead of the election. Liberals fear moving of the supply chain will be well under way by the winter.
TVMediaAG That is exactly what I was thinking. Not that I'm happy about it.