Stock markets around the world remain highly correlated. With this in mind, the German stock market finds itself potentially kissing dual resistance, that could impact stocks in the states.
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On this day 10 years ago, money markets started to seize up, requiring heavily-coordinated central bank action that launched an extraordinary period of central bank activity that is still in full swing today.
US futures are set for a sharply lower open (at least in recent market terms) following a steep decline in European stocks and a selloff in Asian shares, following yesterday's sharp escalation in the war of words between the U.S. and North Korea. In a broad risk-off move U.S. Treasuries rose, the VIX surged above 12 overnight, while German bund futures climbed to the highest level in six weeks.
With the dollar index now 10 points below its recent cycle highs from early January, nervous dollar bulls are starting to reevaluate their initial assumption that this would be a short-term pullback, and many are worried that this could be the start of a new secular bear market.
Whoever is rigging the market is getting increasingly desperate.
The daily VIX slams are getting more and more ridiculous. It’s getting to the point that the VIX is getting slammed 5%-6% every single day at 9:50AM just to pin the S&P 500 (they’re not even trying to get a gain anymore).
Here’s the VIX.
Here’s the S&P 500’s last nine closes. The index is LITERALLY not being allowed to move. It’s now gyrating a point or two per day.