Lots of targets were tagged yesterday, beginning with SPX which nailed our 50-day moving average target.

There’s a reason, however, that futures are off even more this morning.

continued for members…

The gap from Aug 14 (5463.22) is still hanging out there. So, there’s still the possibility that we have another ugly day today.

From ES’ standpoint, this backtest has taken 6 sessions longer than what would have kept it in the rising white channel.  So, it’s a real breakdown, with higher prices contingent on the market’s ability to backtest the broken channel. Note that the SMA200 is now at a level that would be a .786 retracement of the recent highs. Interesting…VIX has broken out, and is trading near its overnight highs.

While currencies are doing little to nothing to stem the slump. And, the 2s10s is back to a measly -2 bps. Stay tuned…