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The United States and China are taking their trade war to the next level.
For its part, the U.S. has put basically all of the imports from China on the tariff list. And it's gone after individual companies like Huawei for intellectual property (IP) violations.
On the China side, additional tariff increases have been made, and in the last 24 hours, Chinese television ran a story about a possible export ban on rare earth minerals to the United States. These minerals are critical components in smartphones, batteries, computers, and almost all things electronic (especially those benefiting from miniaturization).
And that could just be the start to the tensions, as the race to be the first to supply 5G coverage – an opportunity that could be worth $12.3 trillion – intensifies.
As I write this, we are on track to have the lowest prices on the S&P 500 since March of this year. The equity markets have been directionless and volatile for almost three weeks – a singularly difficult market type to trade.
Now let's take a look at what the charts tell us…
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.