MARKET CALL: The Tug Of War Between P/E And E

Last Monday saw the S&P 500 down 9.1% from its January 27 high, which we believe marks the trough of the latest pullback, for now. That was our call on Tuesday. The next two days could make or break our call.

Today, President Donald Trump issued a final, profanely worded ultimatum, setting a firm deadline for what he is calling "Power Plant Day." He specified on Truth Social that Tuesday will be "Power Plant Day, and Bridge Day, all wrapped up in one." He warned the Iranian regime that they would be "living in Hell" if the blockade of the Strait of Hormuz isn't lifted by 8:00 p.m. Today, Trump also told Israeli media (Channel 12) and the Wall Street Journal that the US is currently engaged in "deep" negotiations and that there is still a "good chance" a deal could be reached before the Tuesday night deadline.