After surging more than 40 points at the open, the S&P 500 has just printed new session lows, with the index now just 0.2% higher on the day; banks, utes, energy, industrials, and staples are all lower on the day while tech and discretionary continue to lead the day’s gains but are also paring their advance.
Meanwhile, the Dow has just turned red, having dropped over 400 points from the open, with small caps well red by now.
And all the major US equity indices are now below their 200DMAs.
And Treasuries are bid.
One likely reason: the catalyst for yesterday’s attempted ramp, the report that Trump would meet with China’s president Xi Jinping at the November G-20 summit was just put in doubt by Larry Kudlow:
Europe had no better luck, with the low tick of the day for Germany’s DAX and the Stoxx 600 indexes coming right at the close and in the red; the DAX currently sits at its lowest close since February 2017, while the SXXP closed at the weakest since December 2016.
Overnight Bank of America ominous warned that “If it doesn’t bounce now…” referring to the market. It was not clear what would happen if the initial bounce indeed turned red…
