Futures were all over the map overnight as 104% tariffs were levied on China. China responded by raising their tariffs on US goods to 84%.

The turmoil also roiled treasury markets, where rumors of China divesting itself of US treasuries resulted in a breakout in the 10Y and the 2s10s.

Equities have hit both our downside and bounce targets well ahead of schedule.

continued for members…

Equities are quite oversold, with several gaps to be filled starting at SPX 5415 and another potential decline to 4500ish around mid-July.

Note that SPX/SPY are about to experience a death cross – where the SMA50 drops below the SMA200. In a manipulated stock market such as we have, this is often a point at which the manipulators jump in to avoid the downside such a move entails. We’ll see…