US equity indexes closed very significantly lower, SPX -66pts (1.7%) at 3789. Nasdaq comp’ -1.8%. Dow -1.7%. The Transports settled -1.0%. R2K -1.5%
sp’60min
Summary
closing hour action: an especially ugly late afternoon swing lower, breaking a new cycle low. The 3pm candle is suggestive of lower lows on Thursday, with next support around 3700. S/t momentum ticked lower, and is due to turn negative at the Thursday open.
*awaiting earnings from LEN, KBH
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… and that concludes Fed day. A post rate hike attempt failed to hold, yet another reminder of underlying price pressure.
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notable bond yield proxy: TNX
A multi year high for the US 10yr of 3.62%. Perhaps a little cooling ahead of the weekend, but it should be clear, the 4s are realistic in October.
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notable bond ETF: TLT
Higher bonds… at least on the long end. Yesterday’s reversal candle played out. Any price action in the 103s would merit alarm bells, with a trap door to the 82s.
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notable bank: BAC
Banks struggling.
The grander issue remains… looming consumer debt defaults.
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Here… grey horror… another excuse to stay indoors.
Have a good evening
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more later on the VIX and Indexes by 6pm EST