Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
If you are a Fibonacci fan you will note that this morning’s selloff has broken the 61.8% retracement of the dead cat bounce the S&P 500 experienced the past week and a half. (1308) Yesterday the close was exactly at a 50% retracement, so there was still some hope there. But this break down below all the key levels is troublesome. As always the close is more important than intraday action so we’ll see how the day ends.
At some point these moves in the U.S. dollar and bonds reach parabolic levels and will reverse which is the issue for the bears.
As for economic data Chicago PMI was poor, and new orders were at the lowest levels since September 2009.
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