Failure to hold this level (the 2014 closing low), sets up a waterfall cascade lower. The stair-step lower is ending. Short-covering time is over...
Wall Street's denouement has been written. Team Groupthink views global market collapse as a buying opportunity:
"Net buying was chiefly due to hedge funds, who bought stocks for the fourth week in a row. Buying by this group was the largest since September 2010,"
The global margin call is well underway. Volume is running at 200% of average and yet sources of Skynet liquidity are all running out at the same time:
Yen carry trade
Momentum/FANG stocks
Apple (aka. world's largest brick)
Oil
Oil stocks
Small caps/breadth
Short-covering/volatility compression
Bulls are trapped.
Team Groupthink also covered yesterday ahead of today's ECB dopium meeting which just ended. Likely a bad idea...
"What about January?"
The Idiocracy has been warned many times, but it will still come as a massive surprise...
Equal weight S&P with two Flash Crashes:
The biggest monthly decline since Lehman, the worst start to a year ever, and yet, the past two weeks has seen no urgent selling:
Volume is heavy and rising aka. liquidation mode
The average S&P stock is back at Lehman crash levels:
Oil is in crash mode and highly correlated to stocks
Nasdaq count
This crash will make Lehman seem like a picnic. Volatility will exceed 1987 levels...
Implied options volatility (S&P 100) w/Wilshire total market index