"we're gonna need a bigger trade truce..."

The initial short-squeeze is over and there has been no follow-through...

As we warned this morning the "he said, Xi said" uncertainty (h/t Cameron Crise) of a potential pause in trade tensions is simply not enough to overcome a tightening Fed and fading economic hope. 

The S&P stalled around the 2800 support level we suggested...

 

And Small Caps and Dow Transports have given up their gains, leading the reversal...

 

And finally, the short-end of the yield curve has collapsed further with 2s5s back below 2bps...

And 10Y Yields have tumbled back to below 3.00%...

Crude is still higher but rolling over as gold extends its gains...