Futures are off moderately following yesterday’s ugly self-inflicted wound which saw the S&P 500 give up its hard-fought 200-day moving average. Trump’s efforts to mollify the markets by downplaying tariff reciprocity were defeated by….Trump’s earlier-than-expected announcement of steep tariff’s targeting foreign auto manufacturers. If you’re unnerved by the all the chaos and uncertainty, join the crowd.

continued for members…

Currencies are getting interesting as EURUSD has almost reached the support of its SMA200 and USDJPY seems to be breaking out – though with its own SMA200 just above.The resulting USD strength if not helping stocks much at all. We’ve been watching oil and gas as well. While CL is off a bit in advance of tagging its SMA200……RB is threatening to break out. The result, combined with slightly stronger economic data this morning, is slightly higher interest rates.

Note that the 2s10s is creeping ever closer to new cycle highs and a potential breakout.Last, remember that tomorrow we’ll get new PCE data.