Price action is getting rather wild, as the sp'500 has seen a rather severe swing from the morning high of 2080 to 2037, with VIX breaking through the key 20 threshold. The USD continues to cool, -0.9% in the DXY 97.50s. Gold is catching a minor fear bid, +$1... whilst Oil -1.5%
Here is a thought...
The 'unconscious entity' that is the US equity market... is it trying to spook the fed against raising rates next week?
When it comes to 'data dependency'.. we know the Fed really only care about one thing... the equity market.
With the break of the 2042 low.. there is open air to the next low/level of 2020/19. Any daily closes <2K.. and it'd be the excuse the maniacs at PRINT HQ are looking for to once again... back off.
Ironically.. another such refusal to raise rates would likely repeat the upset that we saw after the Fed failed to raise in May/June.
VIX update from Mr T.
1.30pm...market trying to level out... sp'2036... with VIX 2013.
Regardless of any post 2.30pm recovery... .a break of support IS a break... and market will be vulnerable until a daily close >2080... and right now.. that sure does'nt look possible in the remainder of the week.
notable weakness: energy... SDRL -1%.. having earlier been +7%