New Lows
The selling pressure continues this morning, with both S&P futures and the Dow Jones Industrial Average putting in new lows on the day, the month, and the year.
To put this in perspective, the S&P cash is at levels not seen since September 1997. We expect a wild and choppy trade at these extreme price levels.
As we noted in the Morning Meeting, psychology and momentum will play important roles in this market at low price levels.
Nasdaq futures, meanwhile, continues to hold near the 982 low with support between 981 and 975. Interestingly, Nasdaq is the only major index NOT to make new lows on the year thus far today.
Earlier, this market failed to sustain a trade above 1000, which resulted in some strong local and dealer selling.