The tariff wars have officially arrived. And the markets don’t like it.

Crypto currencies are perhaps the best liquidity/ risk on indicators in the financial system. And as I write this, they’re a sea of red.

Bitcoin is down almost 7% peak to trough from Friday afternoon. Other smaller coins are down even more.

And there is little doubt stocks will open sharply down on Monday. The S&P 5o0 fell almost 100 points Friday afternoon when the tariffs announcements hit the wires.

Trump believes the stock market is a barometer for his economic agenda. And while he’s already suggested there will be some near-term pain based on the tariffs… how long will he be willing to stomach a collapsing stock market?

The S&P 500 has a gap down around 5,860. This should prove a likely downside target for this market reaction to the tariffs. What happens then will be key.

Below that is the 200-Day Simple Moving Average (DSMA) around 5,600 on the S&P 500. It is highly unlikely Trump would stomach a break below that.

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