Ominous Stock Market Signs from the SOX and the “Death Cross”
Market signals point to further downside ahead
Highlights
• Market signals point to further downside ahead
• Treasury market looks past hawkish comments out of Powell
• Wall Street has yet to fully grasp the gravity of the trade war with China
• BoC pauses in their latest meeting, but they are not done yet
Key Takeaways
• Trump Talks, Markets Cheer: U.S. equity futures are squarely in the green and Asia enjoyed a solid session after Donald Trump announced that “big progress” has been made on a tariff deal with Japan (the “big win” for the President likely is centered on more LNG, defense, and agriculture exports to Japan). The yen also has seen a round of profit taking (-0.6% to ¥142.7) as it appears the currency was left off the table on these U.S.-Japan trade talks.
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