The S&P 500 is down 6 points to 1632. Support is at Wednesday`s low of 1627.
Barring a miracle, the 3.2% decline in August will be the worst month for the S&P 500 since May 2012. Funds are selling stocks into month end to avoid showing long positions and rebalancing. Looking ahead, the September calendar is flush with risks including the taper and debt ceiling debate.
The pain in the stock market is boosting the dollar and yen against virtually everything else. EURUSD briefly touched below support to 1.3189, which is the lowest of the month (one pip below support). Cable and the commodity bloc are also at the lows of the day.
The dip buyers are likely to wait until after the European close and I suspect that will mark the lows of the day.