These levels need to hold
You don't have to look hard to find big levels in markets at the moment.
A particular one to watch at the equity open is the Russell 2000. It's been consolidating all year after a big runup coming out of covid but it's in danger of breaking down today. We're set for a 56-point decline at the open, which will break the April low.
At the moment, we're seeing some life in commodity currencies. I hope this bounce lasts because the alternative is an ugly drop on the charts. Translating that to reality is an ugly and ongoing pandemic.
The spot where this happened first was in bonds and that's going to be the first spot to turn towards a better future. US 10-year yields are down 8 bps to 1.22%, which fills in the February gap (call it 1.20% to be safe). That's a spot that some in the bond market have been eying for weeks.
There's a chance to make a stand here (and I think that's the trade) but if we get closes below today and tomorrow, then it won't be pretty. There are too many vulnerable charts.
S&P 500 futures are down 49 points, slightly off the lows.
