After six consecutive down days in the market, and posting their worst day of the year on Monday, stocks are finally clawing back some of the losses today. The S&P 500, Dow Jones Industrial Average, and Nasdaq all closed up 1% roughly from the Monday close.

In addition to markets simply being oversold from the precipitous six day decline, China’s central bank pegged the yuan’s official reference point at more robust level than the key 7 yuan-to-the-dollar point on Tuesday. The move assuaged the currency markets, which were at first terrified by fears that the U.S.-China trade war was devolving into a currency war.

“Going forward, stabilization in the U.S./China trade war is now the most important key to broader market stabilization,” said Tom Essaye, founder of The Sevens Report, in a note. “If the escalation continues, that will cause a further pull-back, regardless of what the [Federal Reserve] is going to do. And, I say that because another 25 or 50 basis points of easing by the Fed won’t materially offset a protracted and escalating trade war.”

President Trump’s announcement of a new 10% tariff on Chinese goods starting on September 1 roiled markets, following a less than confidence inspiring release from the Federal Reserve that rates would be cut going forward. However, market reaction became even more pessimistic when Chinese authorities allowed the yuan break to its lowest level against the dollar in more than 10 years on Monday.

President Trump weighed in on the move, calling it “currency manipulation.”

“China dropped the price of their currency to an almost a historic low. It’s called ‘currency manipulation.’ Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!,” he tweeted.

The nervousness in financial markets over the falling renminbi (yuan) in recent weeks has reached panic levels,” Tom Elliott, international investment strategist at deVere Group, said in a research note published Monday.

While investors are still leery of where the market is headed, there are a variety of ETFs to choose from depending on which direction they see markets going. The Direxion Daily S&P 500 Bear 3X ETF (SPXS) offers investors with a bearish view of the market a chance to trade the downside, while the ProShares UltraPro QQQ (TQQQ) supports a more bullish view, for investors seeing the selloff as just a pullback.

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