“In the end, it will all depend on how Trump decides between a short-term outcome and longer-term aims, which will involve broader domestic political calculations,” Fenby added.

IMG Cuts Global Growth Forecast

Meanwhile, fears of a global economic slowdown were stoked on Monday when the International Monetary Fund trimmed its growth expectations to 3.5 percent from 3.7 percent. Global growth outlook for 2020 was also cut to 3.6 percent from 3.7 percent.

U.S. equities, however, are riding a four-week winning streak in what’s been a strong start to the year after a volatile year’s end in 2018.

“As impressive as the recovery has been, there is still growing concern over the current V-shaped recovery due to correction lows historically being retested, as was the case in ’11 and ’16,” said Craig Johnson, chief market technician at PiperJaffray. “While recent history and an overcrowded consensus suggest the market may revisit the December lows, we believe there is sufficient evidence that also suggests a double-bottom is not mandatory for the current recovery process.”

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