Early trading showed some resilience in equities but that's quickly evaporated. The selling picked up after the soft US services PMI and that's interesting because it means that the bad-news-is-good-news narrative is failing. That's because the Fed appears to be determined to hike despite mounting signs of a slowdown.
Said another way, the market is growing more worried about a tougher recession.
Technically, this looks like a head-and-shoulders top with a target at 10,400, or another 3% lower from here. I can certainly see a case where we close near the lows of the year.
