Update: The Dow is down over 1100 points from its highs in April…
“pause that refreshes”?
* * *
For the first time since Jan 23rd, the S&P 500 has broken back below its key 50-day moving-average to six-week lows as trade deal anxiety takes hold…
Finally, those wondering where are the next selling-wave triggers, here are McElligott’s observations on what will catalyze even more selling:
-
S&P 500, 100.0% long into today but ‘spot’ is currently through the sell-trigger level (note: needs to HOLD & CLOSE below), selling under 2894.82 to get to 60% as both the 2w and 1m signals “flip” to SELL, more selling under 2642.11 to get to -100%, flip to short under 2642.41, max short under 2642.11
-
NASDAQ 100, 100.0% long into today, selling under 7597.86 (to get to 60%, more selling under 6699.38 to get to -100%, flip to short under 6700.16, max short under 6699.38
-
Russell 2000, 100.0% long into today but “spot” is currently through the sell-trigger level (note: needs to HOLD & CLOSE below), selling under 1584.44 to get to 60%, more selling under 1579.99 to get to -100%, flip to short under 1580.15, max short under 1579.99
And the biggest irony: after defying the rally for so long, it was only in the past few days that asset managers finally threw in the towel, and rush to get equity exposure. And, as so often happens, that’s precisely when the trapdoor opened.
And while the equity world is derisking, safe-haven flows are rushing into Treasuries…
So much for yesterday’s terrible auction.
And the yield curve has pushed back into inversion once again…
Zero Hedge’s mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information’s unending quest for freedom. Visit https://www.zerohedge.com
This post has been republished with implied permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.