Orderly Liquidation
Selling in the S&P futures forces a move below 780 with yet another low put in, this time at 778.70. A quick, short-covering bounced followed, moving the market back to 782.
Clearly the market is in trouble, but not volatile as yet. We’re seeing an orderly liquidation today. As we said in the Morning Meeting, the big downside target on everyone’s mind is the multi-year low in S&Ps at 775.
In the Nasdaq futures we’ve seen another new low print at 797 as local traders press the short side. We are seeing a consolidation on the lows of the session.