Gold stocks powering higher while Equity markets are stabilizing Array ( [cookie] => f156d2-9b327a-66f567-604299-428458 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 19392 [user_id] => [reason] => [method] => ) 1 and can accesss
Despite the ongoing volatility, this week’s price action suggests short-term stability for US Equities and likely can begin to lead markets higher in a “2-steps forward, one-step back” type fashion in the weeks ahead. Multiple technical factors have come together to show an inflection this past week coinciding with breadth and volume capitulation at a time when sentiment had reached the most negative levels in years. Technology’s rebound from support this week is another reason for optimism, despite Thursday’s minor setback, and should help to drive markets higher into mid-May. Thus, while trends and momentum remain negative from mid-February, seasonality and cycles show a rally developing following signs of tariff fatigue from Equities, with many stocks have stopped falling despite any meaningful new developments. Going forward, SPX 5500, QQQ-466.43, and DJIA-40,661 remain key areas to exceed to have confidence, and these could be exceeded heading into next week. At this point, it remains premature for me to consider this a bear market, nor should the US economy enter a recession.
Three important takeaways are possible from Thursday’s session:
- US Equities sold off on far less negative breadth than the positive breadth and huge low-to-high range, which happened on Wednesday. Thus, the net result wasn’t too damaging to the trend.
- Trump and Bessant’s comments seem to have occurred right near the lows of Thursday’s volatile session. Going forward, those who are interested in short-term price swings would be well-advised to pay close attention to the POTUS Truth Social account, as increasingly, announcements seem to be occurring which can be market moving.
- There seems to be a Treasury and Trump “put” on the market after weeks of ignoring the negative price action. (This likely is more based on bond market volatility and possible unrest in the Swaps market and Basis trade unwinding than anything regarding Equities.)


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Thomas J. Lee
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