I’m not saying it will “crash” but there is a very good chance of a substantial bull breaking decline after 11 a.m. ET this morning.
Two key things that I will be watching are in the charts below.
S&P 500 break below 3800 with volume, which is the necessary gasoline for the fire.
And in my opinion, although the major banks are already treading water, the bigger issue is what is happening with America’s regional banks, tracked via the KBW index. The liquidity issues might just be starting to hit Main Street before it hits Wall Street.
If both of these breaks happen today, there are major implications for the health of the stock market for the remainder of this year and especially into January when a pronounced slow down in US economic activity will occur. Stay tuned and buckle up, we’re all going for a wild ride today.
Today being the last serious trading day of the year as the big money packs up and goes on vacation until January.