The market is not 100% sure what to make of it, but initially the market moved higher on the release of the ISM Manufacturing data, which swooned to the lowest level since May 2020.

Look at the segments contracting faster. This suggests we are barreling towards recession. I hope the folks at the Federal Reserve are seeing this data.

Keep your eyes on the ten-year bond yield, which is approaching a major downside test. I think narratives across assets change with a dip below 3.40%.

For now, it’s still a wait-and-see environment.