The S&P 500 fell as low as 1774 but the market has rebounded by 10 points.
The real battle is being fought in the Treasury market and USD/JPY. The 2.70% level has held in 10-years (despite Bill Gross’ latest call to buy bonds) and so has 102.00 in USD/JPY.
If the Fed doesn’t ‘something’ it looks like they’re worried. The best thing might be for the FOMC to show some confidence and a strong hand. The market might kick and scream on the knee-jerk but markets will eventually calm down if developed market economies continue to grow.
I think Turkey, Argentina and South Africa are small potatoes on the bigger picture but Russia is starting to get attention and it could be a real problem.
USDRUB – Good news if you’re going to Sochi
