We’ve been down as low as 1% to 1926 halfway through the US session and heading for the biggest percentage loss from a high since the drop from 1850 (6%) earlier on this year. We’ve already beaten the first 2k attempt drop of 4.35%. We’ve not had a big drop for a very long time and we’ve been here many times before and thinking about getting one.
S&P daily 02 10 2014
Waiting for these big moves down have often been painful so look to the levels to hold or break before adding to positions of changing tack. 1900 is the big line in the sand for this current move and going with a bounce or a break will be the play.
Overall there’s a bit of a sour feeling creeping into markets at the moment and USD/JPY is getting its fair share as it slips to 108.04, -108 pips top to bottom. That’s a decent move from this pair and highlights the fact that we might be very close to seeing a top being put in place. With NFP tomorrow I’m going to be wary of how we react if we get a good number.
