Little on the data docket as the focus stays on continued plunge in US stocks

Another 4% rout in the Nasdaq rounded off a rather dreadful day for risk assets yesterday, with oil slumping heavily as well while the dollar and yen kept firmer.

Asian equities are softer in trading today but US futures are somewhat more calm with S&P 500 futures flat and Nasdaq futures up ~0.7% for the time being.

That said, the mood remains very much fragile and things can quickly turn around later in the day so just be mindful that the slight pullback here isn't hinting at a significant turnaround in sentiment just yet.

This is arguably the first time that the Nasdaq truly and firmly broke below its 200-hour moving average since the start of April and sellers have been dealt a bit of a blow after having seen the buy-the-dip strategy work time and time again over the past five months:


In the bigger picture, price may be running into key technical support levels and that will be a real test of buyers' resolve and how much more this correction can go:


The 11 August low @ 10,762.71 as well as the 23.6 retracement level @ 10,789.60 will offer up a key support region and that will be an interesting spot to watch this week, should price action continue to trend lower in the coming days.

Looking ahead to Europe today, there isn't anything to really shift the dial so once again just be mindful of Brexit headlines and any further twists and turns in the risk mood.

0545 GMT - Switzerland August unemployment rate

Prior release can be found here. The Swiss jobless rate has been keeping steady over the past two months and more of the same is expected here, with the government's furlough sheme helping to prevent a more disastrous impact on the labour market.

1100 GMT - US MBA mortgage applications w.e. 4 September

Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. The focus will once again be on purchases as that has been one of the more bullish spots outlining that US economic conditions are not as dire as first suggested by the recent dip due to the coronavirus impact.

That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.