The market is broadly lower so far this morning (SPX -0.8%, QQQ -1%) as we head into the Memorial Day Holiday weekend. The US market is closed on Monday.
The overnight macro news was focused on tariffs with Trump recommending a 50% tariff on the European Union starting on June 1st.
In other bearish news, AAPL is down ~2.5% so far this morning on news that Trump “expects them to manufacture iPhones in the US”.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter!”
Donald Trump on Social Media
Even with the negative news flow today, the overall market action is not overly bearish to me. I talked on Wednesday about my view that SPX is likely to test $5740-$5750 support (21 EMA support) on this pullback. So far today, we have made a low of $5767 (so just above key support).