Republic Risk: Something Has Broken

Tuesday's price action suggests that the markets are now flying without a safety beneath it.

Equity Storm Watch Is RED on the S&P 500 and RED on the Russell 2000

We had another “Red” moment yesterday.

Still, the truth is that we’ve been moving from a period of lower highs and lower lows since our first warning around April 4. We’ve been VERY cautious about the state of the markets, and it appears something significant happened in the last 24 hours. This afternoon will feature Jerome Powell, and markets continue to grow more bearish. Today’s jobs report was higher than expected, which is another warning sign heading into Friday’s report.

Bitcoin’s negative move is also bearish as leverage leaves the system.

What to Do Today: Wait until 2:35 p.m. and follow the herd. Today should be a relatively lower-volume day heading into the Fed announcement.