sp'60min
Summary
The detonation of a nuclear bomb in North Korea is clearly not helping global equity sentiment. Other than a giant 10km rock falling into the Pacific, is it the ultimate excuse for a big gap lower.
With an open <2K, the bear flag will be confirmed.
A few have correctly noted in the past few days there is support in the 1960/50s... and it will be interesting to see if the market finds support there.
In the bigger picture it doesn't much matter though.. we're headed far... far lower.
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Update from Oscar
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Doomer chat, Hunter with Ms. Brown
As ever, make of that, what you will.
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Overnight action....
Germany, DAX currently -1.4% @ 10160.
Japan: -1.0% @ 18191
China: +2.2% @ 3361.. strong gains into the close, as the 'lockup/no sell' rule is extended to 'indefinite' by the communists. The PBOC were also probably buying after the nuke.
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What am I doing? Well, I'm faced with either chasing it lower on ANY nano bounce in early trading.. or merely sitting it out until the current cycle plays out... and then waiting for a bounce to play out into late January.
In any case... I can't be long now... the December close was decisive across the world. We're headed broadly lower in the weeks and months ahead.
Have a good Wednesday
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8.00am... sp -33pts... 1983....
notable early movers..
VXX +8%, TVIX/UVXY +16%
AAPL -2.5% @ $100
DIS -1.9% @ $99
8.15am ADP jobs: 257k, well above expectations. Good news is 'bad news' ?
sp -34pts @ 1982
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9.00am.. sp -30pts... 1986...
Meanwhile.. the cheerleaders are under strain...
It will be a rough time ahead for those who want to wave pom poms.
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9.12am.. I keep writing 2080s... rather than 1980s. I think my subconscious is struggling to believe the market is actually trading under the 2K threshold!
9.36am... A break <1989.... empty air to 1965/50 zone.
VIX is kinda surprisingly cool, just +12% in the 21s. I'd have expected 23/24s at least.