Calling it a red day is an understatement at this point

Not on the list is China's Shanghai Composite index and that is also down 4.3% as Chinese markets are into their lunch break in the current hour. Markets are acting up in a peculiar manner today to say the least - more so in currencies - but the capitulation in global equities is putting bids in familiar faces since overnight trading i.e. the swissie and the yen.

Of note, the dollar has been weaker across the board mostly except against the commodities complex. These are interesting times in markets.

The scary thing for equity investors and risk sentiment in markets is that this could just be the tip of the iceberg.

The S&P 500 chart shows that price is on the verge of testing the 200-day MA (blue line) and the upwards trendline that has been holding up since 2016. Should those two levels give way, expect further correction to come in US stocks and in turn that will feed into global equities and market sentiment too.