The market finished the week on a down-note thanks to Trump’s escalating trade rhetoric.  He truly thinks his heavy hand on China will pay off in the end.  The risk he’s taking, of course, is that tariffs will hurt Americans too deeply ahead of the 2020 elections. It could also increase the likelihood of a recession, although slim at this point.

From an equities view, the end-of-week sell-off took an interesting turn on Friday.  To my surprise, buyers came in and took the market off its lows, resulted in a nice reversal candle on the daily SPY (below).

My plan is to watch the action and pay particular interest in after lunch buying strength.  If we see market stability and a dropping VIX, I might add long in some of my favorites.  Of note, the VIX appears to have put in a reversal candle on Friday: