by John Galt August 15, 2019 05:25 ET
All it took was one headline:
And boom. There goes the 150 point rally the DJIA was set to have this morning:
Even though this was set up as a reflex rally on over sold conditions, in a bear market beginning over sold can become more over sold before it bounces.
The other action was in the credit markets where in an amazing move, the 30 year US Treasury which broke the 2.00% yield mark overnight, rolled over again on the news to below 2% after the equity futures rally died:
If the PPT fails to rally the markets today, conditions could be setting for a nasty spill next week as the volume was substantially higher yesterday than the prior 300 plus point rally the day before. Add in the fact that economic news out of Asia this morning was dim and Trump is still tweeting his little heart out, the formula for a mistake and a disaster is on the table.