{"id":73242,"date":"2025-03-23T08:48:46","date_gmt":"2025-03-23T15:48:46","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=73242"},"modified":"2025-03-23T21:55:23","modified_gmt":"2025-03-24T04:55:23","slug":"tariff-flexibility-countdown-underway-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2025\/03\/23\/tariff-flexibility-countdown-underway-the-market-breadth\/","title":{"rendered":"Tariff Flexibility Countdown Underway – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

The market delivered a contradictory signal to end the week. For example, while swingtradebot flashed very bullish technical indicators<\/a>, market breadth declined the last two days of the week. This divergence is symbolic of the swirling tensions in the air. After, the three-week sell-off into a bear market<\/a> took advantage of rising economic fears and uncertainty, the Federal Reserve presented enough confidence<\/a> to maintain some calm. Finally, near market close on Friday and with a countdown looming for an April 2nd round of reciprocal tariffs, President Trump teased out the possibility of “flexibility<\/a>” on tariffs. While tariff flexibility is meaningless in this political environment until deals actually get done, the market received a more hopeful launch for the countdown.<\/p>\n\n\n\n

Trump has marketed April 2nd as America’s “Liberation Day”<\/a>. Tariff flexibility could provide just enough of a salve to rally markets as if liberation from economic chaos is indeed imminent, the ultimate display of hoping for the best.<\/p>\n\n\n\n

Fortunately, we do not need to wring our hands about politics when the financial markets provide ample signals for action. Currently, market breadth is close enough to oversold to warrant trades in anticipation of the next rebound into, at least, the next key resistance levels. Deeper selling from current levels would set up more aggressive short-term trading opportunities from oversold conditions as defined by the AT50 trading rules<\/a>. Eager longer-term investors can start deploying more cash knowing that this dip is “extreme enough” relative to a multi-year investing horizon. More conservative longer-term investors can wait until the bear market ends with convincing closes above 200-day moving averages (DMAs). I will have more to say on these approaches and principles in an upcoming “refresher” post.<\/p>\n\n\n\n