As you can see, the S&P 500 has broken out of the downtrend that started October 3rd, but has failed (thus far) at the 200-day moving average (the purple line).  That 2,742 level is a key area to overcome for a return back to the levels of December 3.  That would complete this V-shaped recovery (about 3.5% higher than current levels).

Mnuchin and Lighthizer are in China this week.  So we’ll get more information on the U.S./China trade front.  However, it now looks like the March 1 trade truce deadline will be pushed back.  And maybe the whole thing culminates with a meeting between Trump and Xi at Mar-A-Lago next month.

Perhaps a good signal, after the holiday week in China for the Lunar New Year, Chinese stocks opened the week strong.  The index that tracks smaller cap stocks and higher risk tech names jumped 3.5%, for the biggest two day gain since early October.  Broad stocks in China are now up 9% from the January lows.