In trading terms, a Bearish Engulfing Pattern signals the start of a downtrend, which often indicates lower interest rates. To visualize it, think of a “V” shape: you slide down to the bottom, then quickly swing back up.

The image shows it best. We see this all the time but what is different is it comes off the heals of the PPI report yesterday and Japan’s GDP more negative than expected.

The global yields were lower in sympathy. Rates dropped.

Housing Starts and Permits

Housing Permits are forward looking indicator and its been trending lower. permits down 5%. Tariffs create uncertainty and builders are already on edge.

Housing Starts are a better read. They are relatively flat in April an annualized down 2%. Not a big drop.

Have a fantastic weekend and if any questions come up, feel free to reach out.

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