SHORT TERM (one day) – Possible slight pull back or consolidation at 2950 area.
MEDIUM TERM – HIGHER, testing 3,000 (200-day MA = 2997)
LONG TERM – NEW ALL TIME HIGHS.
In the meantime, China will slowly sink economically as the US starts to move companies to India, Vietnam, etc. It would move to the Philippines too; however, Duterte is too unpredictable to deal with. China has nothing but cash flow and a veneer of power, but it is built on a foundation of theft and decay.
Everything with China is a shortcut that will unravel, but when they realize Trump called their bluff (knowing China only has a 3, 5, 7, 8, and Q) they will have two choices – rebuild or retaliate. This will cause a LOT of market disturbances, but not for a while.
The SPX is down only 8.57% on the year. How nuts is that? No one can understand why we are not lower, which is why there is so much cash on the sidelines, which is why we are moving higher.