Equities were holding out on optimism early yesterday before it all went south in US trading. The S&P 500 finished down by 1.1% with the Nasdaq also observing a 1.1% drop and the Dow a 1.0% decline. Stock futures are higher today but it is perhaps just a momentary respite after three consecutive daily losses since Jackson Hole.
S&P 500 futures are up 23 points, or 0.6%, currently but the technicals continue to look pressured when you view the cash market instead. But perhaps we are seeing buyers lean a bit on support from the 50.0 Fib retracement level at 3,982 as seen here:
The so-called "bear market rally" appears to be snuffed out now and if we do see a drop below the key technical level above, it would amplify further downside momentum in equities. All eyes will be on the US jobs report at the end of this week to be that key determining factor.
