On Friday, the U..S and China initially announced their agreement on the “Phase One” trade deal. While that might have assuaged trade war fears, certain elements of the apparent truce still remain unclear for now.
Thanks to the phase one agreement, China held off tariffs that were scheduled for Sunday on US goods. The proposed tariffs would have included U.S. autos and parts., and corn and other grains. The US also withdrew from its prior plan of slapping 15% tariffs on $160 billion worth of Chinese imports by Sunday.
Reuters reported that U.S. Trade Representative Robert Lighthizer told reporters that China would buy at least $16 billion more agricultural goods in each of the next two years, adding to the 2017 baseline of $24 billion. The report also mentions that Beijing agreed to try for $5 billion more in additional purchases each year – that would leads to total additional purchases of $40 billion to $50 billion.
Some existing tariffs on U.S. imports to China remain, just as the U.S. maintains its already-imposed tariffs ranging from 7.5% to 25% on about $370 billion of Chinese goods. White House economic adviser Larry Kudlow told Fox News' Maria Bartiromo that he sees the existing 25% tariffs on $250 billion on China as "insurance" to get China’s compliance with a deal.
Lighthizer indicated that the phase one deal includes structural changes by China such as commitments on ending pressure for U.S. companies to transfer their technology, and improved protections for intellectual property.
However, the phase one deal’s success could critically depend on whether and by how much the U.S. will roll back other tariffs, and when.
Both China and the U.S. would still need to officially sign the agreement, which Chinese officials said requires legal review. Lighthizer said both countries hope to sign the deal in Washington in early January.
SPY saw its Momentum Indicator move above the 0 level on October 08, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 63 similar instances where the indicator turned positive. In of the 63 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for SPY just turned positive on October 10, 2024. Looking at past instances where SPY's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
SPY moved above its 50-day moving average on September 11, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in of 371 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 463 cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for SPY moved out of overbought territory on October 15, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 49 similar instances where the indicator moved out of overbought territory. In of the 49 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
SPY broke above its upper Bollinger Band on October 11, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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