The Sell Off Begins

Weekend Aug 22, 2026

There isa clear five wave decline from the early august high in the INDU. I suspect we have more rebound this next week. Social Mood turning negative. WMT and Advance Auto Parts reported slower sales growth Thursday, WMT tumbled 9.2% and AAP 25%, In a bear market all news is bearish, this shows a shift in mood from bull to sideways with various worries to down. Shades of Smoot Hawley Tariff Act of 1930 https://en.wikipedia.org/wiki/Smoot%E2%80%93Hawley_Tariff_Act the talks between Canada and the US fell apart, that did not take long, Canada promises toretaliate. Trump said he did not want to be Herbert Hoover but so far he is following the Hoover playbook wiht tariffs, for no good result. Again, negative mood is spreading. https://www.yahoo.com/finance/economy/policy/articles/canadian-prime-minister-suspends-trade-034817957.html On the two hour chart, the 30 year T bond yield is following the 50 bar moving average shall we say to a T. The 39 year cycle bottomed in March 2020. Now with $40 T in debt, corporations in debt for AI adventures, municipalities in debt, the trend in yields is up. Bessent was just plain silly claiming to buy back more bonds, it simply took yields to the bottom of the current trending envelope.