US equities open significantly lower, with a provisional low of sp'1954 - the upper end of the gap zone (1954/51). Considering other world markets (and overnight US ES futures levels), further weakness to the sp'1920/00 zone looks highly probable.
*note the lower Keltner band in the 1760s.
I'll try to cover it more later... but it is a fair question to ask whether this is the equivalent of January 2008... or July 2008. Every cycle is unique of course, but the style of decline is often similar.
China news: the communists have decided to cancel circuit breakers for Jan'8th.
So.. there you have it... they have already decided to 'let it go'.... no more attempts to hold 3K. The door is open to 2500 in the short term.
As for US markets...
From a pure cyclical perspective, equity bears face the ticking clock... as there is probably no more than another 1-2 days left of the current down wave from last Tuesday's high (sp'2081).
We'll likely floor tomorrow on 'jobs Friday'.... or via a flash-crash in the 1750s next Monday.
Either way... anyone short should be increasingly cautious as we move toward the sp'1920/00 zone.
*time for a little sun.. back soon