Major averages rose on lower volume as they attempted a bounce after the recent selloff due to escalating tensions between the U.S. and North Korea. Both the S&P 500 and NASDAQ Composite encountered resistance at their respective 50-day moving averages.
The U.S. is the defacto global super power, but the emerging Chinese super power is forward looking with the possible displacement of the U.S. with its own military and economic global empire. Some have suggested it is to China's advantage for North Korea to have nuclear weapons with China using North Korea as a proxy. China continues to provide both economic and military support to North Korea so sanctions against North Korea have been useless.
Futures are gapping higher as the geopolitical tension eased a bit with U.S. Secretary of Defense Jim Mattis and Secretary of State Rex Tillerson saying that the U.S. is trying to achieve a diplomatic solution to achieve the “irreversible denuclearization” of North Korea. Expect further spikes in volatility should the situation between the U.S. and North Korea intensify.
Market Lab Report - Premarket Pulse 8/14/17
| Published: | 14 Aug 2017 09:23 ET |
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