SPX S&P 500 1-Minute Chart; Stock Market Goosed By Happy China Trade Talk

The SPX 1-minute chart shows the euphoric joy pumped into the stock market at 2:42 PM EST, Thursday, 1/17/19, when the Wall Street Journal reported that the US Treasury plans to relax the tariffs targeting China. The S&P 500 catapults 23 points in 11 quick minutes above 2645 as traders trip over each other buying stocks at the ask on the happy talk.

The SPX closes at 2636 above the 50-day MA at 2627 and 100-week MA at 2618. The 20-month MA is 2663. The SPX remains above the 200 EMA on the 60-mintue chart at 2584 so the market bulls are singing songs and throwing confetti.

Treasury Secretary Mnuchin runs to a microphone exclaiming that the story is not true. Mnuchin claims that neither he nor Trade representative Robert Lighthizer (the chief trade negotiator with China) made such a comment. The Treasury says the talks are an ongoing process. The SPX retreats 19 points to 2626. President Trump may have directed the staff to goose the stock market with happy trade talk but he failed to provide a heads-up to the Treasury.

Traders and investors are optimistic for a US-China trade deal. Both the Chinese and US stock markets are in turmoil so Trump and Xi are likely anxious for an agreement. Traders believe the original statement and buy stocks into the closing bell boosting the SPX to 2636.

The stock market has rallied over the last week on US-China happy trade talk (although there is not one single detail provided to verify that there is progress) and global central bankers (Fed, ECB, BOJ, PBOC) promises to maintain easy monetary policies well into the future. The PBOC provides a triple R cut already taking concrete measures to goose the economy and markets. Always remember, the central bankers are the market. Fed's Evans flaps his dovish wings in a Bloomberg interview Thursday evening. They cannot help themselves. The Fed must keep the stock market elevated for their wealthy masters. Such is the crony capitalism system in America. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.