Opportunity Day ??…

The theme we have been seeing, where deficit thinking is driving the upward move of the markets is being tested today. The April7 low remains as a marker, we have seen a good bounce. Depending on the market the RSI has not moved above 50.0 yet, NDQ hit 48.0, SPX hit 46.0, RUT hit 41.0. Technically, what happens at this resistance juncture is significant. Will this back-off be bought?

On another issue, we continue to believe that the Russell / Nasdaq 100 ratio is a good way to look at the bigger picture. It made a low on Monday at 0.990 and has bounced up to 1.019 today. This is constructive but there is still a lot of work to be done before the ratio hits 1.050, the level we believe is needed to support Bessent’s contention that Trump economics is about Main Street, not Wall Street.

News remains unsettled, China and Harvard tell Trump to rethink. He remains mired in an extended “Senior Moment”.

New readers may note that there are days when we say nothing. In general, that means we don’t think there is anything new worth talking about in terms of the market.

Update at 2:30 PM CDT

The Fed said it was not going to rescue the economy from Trump’s assault. This made this opportunity day to be an important one to watch unfold. During the session there was a bit of panic, however the small cap stocks on the close seem to be indicating this is a buy day.