Many key indexes have retested their 2021 highs following Trump's market crash.
Here's the S&P 500 $SPY revisiting its breakout level.
And here's the same story in the Nasdaq 100 $QQQ.
And similarly in the Dow Jones Industrial Average $DIA.
After market crashes, we often see sharp, aggressive countertrend moves. With the indexes now having fully retested their 2021 highs, this could be the point where we start seeing a notable rebound.
In other words, we've had the crash, and now I'm anticipating the sharp rebound.
As for where that will lead or whether Trump will back down—it’s tough to say. We can’t predict if we’re entering a more sustained bear market. But in the short term, a countertrend rally here seems to be a logical expectation.
