There are 3 prominent unfavorable news for the market this week. International credit rating agency Moody’s downgraded the US sovereign credit rating from the highest level 3A to Aa1, citing rising government debt. Harvard University was banned to receive international students. Apple had to be levied 25% tariff on i-phones produced aboard.
From the NASDAQ chart on page 4, a reversed Head & Shoulders is formed, but the right shoulder is too small that this is an incomplete pattern. However, Nasdaq is stronger than S&P, it proves technology stocks are leading the market. People may ask, is the market going to refill the jumping gap. The standard answer is that most of the gaps in US stocks will be refilled, but we do not know when will exception comes. Even is refilled, may not be today, may be several months later. No one can say this answer is wrong, that means just neglect it.
There are still a lot of uncertainties, just like tariff on EU may start on Jun 1st, and tariff talk on other countries not yet come to compromise. So that there may be a deep drop. But please refer to the drop which the bottom is on April 7th, a lot of people are waiting for such a V-shape rebound. So this time they would buy before the bottom of last time occurs. For most of the time, US stocks are running above the 250-SMA, and when under it, it the time for buying in. It is hard to believe another bottom as deep as April 7th are waiting for you to buy in.
For technology stocks, mind that the Magnificent Seven (MAGS) is performing weaker than Nasdaq (QQQ). So better hold the later for AAPL, NVDA and TSLA are quite weak this year because of Donald Trump. But he will step down in 2029, tariff will be cut at least to some extent, and Landing of Mars will come true in 2029 or 2030. If you hold ETF that performs better than the market, the profit will be unbelievable.