Brief Recap and Updates on the MarketsSPY Charts and some Technical AnalysisIn Tuesday's action: Stocks had another rally on Tuesday as traders ignored the trade wars news. Financials and Tech stocks did underperform later in the day.After the Close: The Trump administration raised the stakes in the trade war with China, saying it would slap 10% tariffs on an extra $200B worth of Chinese imports. The markets are selling off now based on this escalation. News to keep in mind Wednesday morning: Markets are lower in pre-market tradingAt 7:40am ET - Dow futures vs fair value: -189.00. S&P futures vs fair value: -18.00. Nasdaq futures vs fair value: -54.00.The VIX is up over 7% in pre-market tradingKeep an eye out for any trade war headlinesToday's Economic Calendar 7:00 MBA Mortgage Applications8:30 Producer Price Index10:00 Atlanta Fed's Business Inflation Expectations10:00 Wholesale Trade10:30 EIA Petroleum Inventories1:00 PM Results of $22B, 10-Year Note Auction3:30 PM Fed's Williams SpeechThe SPY charts are pictured below. The first is a 3-month chart followed by a longer-term 9-month chart. We have broken above the 278 level in Tuesday's trading. To me the rally seems overdone and I expect us to pullback under 278. The MACD lines turned positive and have crossed up. The Stochastics have been rising and are now overbought. The Money flow is currently a slight positive for the markets. This mornings pre-market activity points to a lower open. With the Stochastics overbought and the negative trade war headlines I expect the SPY to drop back into the 273-278 trading range. This latest move up did show some market strength. On the next dip/pullback we may look to add to some positions while keeping an eye out on the trade wars and politics headline risks.In the longer term chart, we are still marking a trading range of 270-280. We would add to positions at the bottom of this range or take some profits at the top of this range. Nasdaq Composite +12.4% YTDRussell 2000 +10.4% YTDS&P 500 +4.5% YTDDow Jones Industrial Average +0.8% YTDDisclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. Follow us and check back occasionally for additional articles or comments. With our Daily Trackdowns, additional analysis/observations during the trading day in the comments by us or our readers.