China has moved the goal posts on the "Phase One" trade deal...by asking for the U.S. to remove some of their existing tariffs. If President Trump caves-in to these demands, it will only prolong the "Economic Cold War" that now exists between the U.S. and China in the years ahead. However, it will also be positive for the stock market for the rest of this year...and for the global economy in 2020.
We actually believe it would be healthier for the stock market if it took a "breather" right now...to work-off the short-term overbought condition that has developed recently. THAT would give the stock market more upside potential later this year...and into next year.
However, if the White House caves-in to China's demands, it could lead to an immediate "melt-up" in the stock market...given that so many key leadership groups...AND key global stock markets...are breaking or testing critically important resistance levels on a technical basis.
To learn more details about what we're watching right now...and to see the charts that we're talking about, please click here to try a trial subscription to my market letter, "The Maley Report" (TheMaleyReport.com).