As I noted in the brief weekend note Market Alert: Waterfalls Ahead? I warned of the possibility of what appears to be happening today. With that being said, here is a quick snapshot of the futures at 5:30 a.m. this early Monday morning courtesy of Investing.com:
The key level to watch for any bounce or support is 4200 on the S&P 500 as if we violate that today, not only will it initiate a full blown panic in the markets, but key technical support at the 200 day moving average around 4100 would be in play.
And it’s possible we could see a further drop at 9:30 a.m. as Chinese markets are closed for a holiday and other than Hong Kong’s Hang Seng they have few options to sell equities to raise cash. And yes, the Hang Seng got smoked last night:
Commodities, especially copper are being hammered also:
Meanwhile the “safe haven” of cryptocurrencies is not so safe this morning:
Buckle up your seat belts folks, the market might be experiencing some serious turbulence ahead.