MAGA Crash

It was all going so well, then this headline showed up last Friday:

The Trump trade war is collapsing consumer sentiment:

At the beginning of February, Trump ordered tariffs against Mexico and Canada, but when markets tanked he "delayed" the tariffs for a month. What ensued was a three week global short covering rally.

Now that rally is ending and today Trump announced that the tariffs will go forward as planned.

In this chart we see that Momentum Tech imploded in January but then rallied to a lower high during the trade war reprieve rally.

Now it has round tripped back to the lows of January.

Along with Mo Tech, Cryptos are getting monkey hammered to new lows

Transports warned that this latest S&P 500 overthrow high was a bull trap.

This rollover in Transports is deja vu of the 2022 top and subsequent bear market. The divergence between the Dow Transports and the S&P 500 implies Dow Theory non-confirmation. If the Transports don't make a new high then it means the economy is imploding.

Which happens to confirm what consumer sentiment is saying.

Go figure.