In Going in Reverse? last week we talked about the coming risk off in AI and Crypto.
The market was saved from Judge Mehta’s weak ruling (i.e. beneficial for Google) on Tuesday, and brought some green shoots in the market with GOOG up 10% for the week.
NVDA however closed down 4% — breaking below the Weekly EMA10, a level which I have found to be very predictive for reversals from overstretched levels.
ETH closed down 2.2% while BTC is up $3,000 from the low of $108K-ish.
Note: We called out the double top in BTC as it was forming in mid-August here. With a break below $108K — anything goes… 🔻🔻
The biggest catalyst for the week however was not the ruling on the Google Monopoly (note, there is another case ongoing and they aren’t dodging that one!) — but a weak jobs report which complicates everything.
Let’s see how the setup in Tech-AI together with the weakness in jobs and the economy affect the big picture and start to gain the critical mass of power required to spin the cycle in reverse.
For those of you that have only joined us more recently, the map we are working with has been revised in the Techno-Imperial Cycle here.
We explained that (for practical purposes) Trump is basically just a Biden 2.0 — the simple read.
But this week’s catalysts complicate that picture massively for Trump, the real economy and Big Tech/AI, tossing that read out.