US equities closed severely lower for the second consecutive day, sp -64pts @ 1970. The two leaders - Trans/R2K, settled lower by -2.7% and -1.3% respectively. Near term outlook is for a bounce to the 2070/80s.. before renewed, and increasingly severe downside into September.
sp'60min
Summary
*closing hour.. further market horror... with wave after wave of selling... as no one wants to buy ahead of the weekend.
As Cashin on CNBC noted, how China trades overnight Sunday will be key. If the PBOC don't act... and the Shanghai comp' loses 3500s.... a Monday bloodbath will be due.
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... and the wildest week since August 2011 comes to a close.
Frankly, as of Wed' afternoon, around 2.30pm.. when we were trading at sp'2096, I was still hopeful of the sp'2050/40s - with VIX 18s, by the Friday close, but certainly.. to see the sp'500 lose the 2000 threshold - with VIX 24s, today was simply incredible to see.
With huge technical breaks on the giant monthly cycles... the equity bears are now in control on the US market.
All bounces are to be treated as such, and I will look to be all out short on any such bounce next week.
Have a good weekend everyone
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*the usual bits and pieces across the evening to wrap up the week :)
