This reflationary implosion was ignited the exact same way as the one in early February. by "better than expected" wages in the jobs report - meaning they were Third World, one notch better than Banana Republican - the lowest level on the rapacious exploitation scale...
Then as now, the jobs report marked the trend-line break. The breakout above the January high is now at risk (horizontal blue line), which would make the rally since May a headfake bull trap. The 50 dma comes in at the same level which was the acceleration point in February:
The real carnage is taking place in Tech and momentum stocks:
Large cap:
Small caps are getting annihilated as the "trade war" premium gets unwound following NAFTA 2.0 this past week (domestic small caps had been viewed as a safe haven from tariffs).
Nasdaq breadth is the worst since 2016:
S&P breadth is rolling over again
New lows are exploding on the NYSE
Chinese Tech stocks got obliterated this past week as China's markets were all closed. Will be interesting to see what happens when they re-open this coming week:
India is catching down to China
Dow Theory just went out the window
Another high is wearing off
Housing is getting annihilated by Trump's "free money"
Same as last time
Vol sellers have doubled down on global risk
