Here we go again. Trump’s latest threat to impose 130% tariffs on China tanked the S&P 500 by over 200 points – the biggest decline since “liberation day.” ES hit our 6545 target almost two weeks earlier than forecast.

It came as no surprise, then, that he had a change of heart over the weekend.

“Don’t worry about China, it will all be fine!” President Xi Jinping “doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”

Got that? The US wants to help China. Trump’s comments had nothing to do with the stock market’s demise.  Or TACOs. Definitely not TACOs.

continued for members…

The recovery has been impressive, but there’s more work to do to get the market on an upswing again.

Currencies have been all over the map, with the DXY still broken out.

CL and RB also tanked, nearing our next downside targets……as the 10Y neared channel midline support.The bond market is closed today, but it’ll be interesting to see if the 2s10s can remain below 56 bps once it reopens.