Deflation and recession fears are on the rise.
Economically sensitive commodities like copper and oil have erased all of their 2024 gains and are now declining rapidly.
Defensive sectors like utilities are soaring… while growth-oriented sectors like Tech are struggling to move higher.
And worst of all, the ratio between stocks and long-term Treasuries has broken its 40-week moving average (the same as the 200-day moving average) for the first time since the pandemic crash!
All of this is EXTREMELY bearish and poses a major warning sign that additional downside could be here soon. Indeed, my proprietary Crash trigger is on the verge of registering a “SELL” for the first time in four years.
This signal went off before the 1987 Crash, the Tech Crash, and even the Great Financial Crisis. And right now, it’s flashing its first MAJOR warning sign in years.
To find out about this trigger, and what it’s saying about stocks today…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research