Stocks, commodities and currencies went up together and they are coming down together today.
The S&P is down 20 points or 1.75%, gold is near session lows of $1330 and EUR/USD extended its losses to 1.3739 level after losing support at 1.3760/70. That level is now moderate resistance with 1.3830 now a more formidable hurdle. 1.3635/40 is now the next downside target.
Helping fuel the latest run of risk aversion is news that Pimco and Blackrock, two of the largest fund managers in the US as well as the New York Federal Reserve , which holds a huge portfolio of mortgage backed securities, is seeking to put mortgage backed securities to Bank of America. At par.
Bad news for Bof A if they are successful…
