**Stocks Rebound Following Trump’s Assurance on China**
U.S. stocks experienced a significant rebound on Monday, spurred by President Trump’s social media assurance that investors should not worry about China amidst recent tensions, including threats of 100% tariffs. This recovery follows last Friday’s sell-off, which was largely driven by Trump’s comments accusing China of hostility. As a result of this renewed confidence, AI stocks, which have been pivotal to the current bull market, continued to drive gains. Broadcom Inc. (AVGO) saw a 10% increase after announcing a significant multibillion-dollar deal, showcasing the ongoing strength in the AI sector.
**Investor Sentiment and Market Tools**
As investors prepare for potential market shifts, analysts are utilizing tools such as the “Crazy Map” and the “ABC Exit Framework” developed by Senior Analyst Brian Hunt to guide decisions on market exit strategies. These frameworks have identified key milestones that signal when to prepare for a market downturn, with recent analysis indicating that three indicators are already cautionary (yellow) while two have turned negative (red). The frameworks emphasize the importance of assessing price trends and volume patterns, aiming for a structured exit strategy to minimize losses in the event of market decline.
