Recession IncomingVery clear confirmation signals here across many sectors in the market that we are in a recession. Fundamentals were breaking down last summer in fact, but now everything is rising to the surface and markets are turning. Buckle up.
Oil is breaking down today.
Bond yields continue to signal de-risking.
USD continues to break down.
USD/JPY is heading lower back toward July panic levels.
VIX is sustaining above 20.
I'm not 100% clear on the structure of this count, so please feel free to share your charts and insight here, but I don't think we are looking at a buy the dip and shoot back to new highs situation anytime soon here.. Unless Trump's entire policy stance changes, he drops Tariffs, and starts increasing the deficit and handing out money, the tightening and de-risking will continue. That said, I believe this is a great thing long-term and is what needs to happen, so I am all for a recession at this point. But this medicine is going to tasty very bad.
All of those white boxes below the price chart are unfilled gaps. I'm not entirely sure if there is an amount of time that passes that makes unfilled gaps less reliable, but still they are there.