S&P 500 Gaps Down As 50DMA Taken Out

Tyler Durden's picture

Volume is further picking up as Financials move to the worst spot (down over 3%). ES is down 2.5% and has just taken out the 50DMA as the Dow is down over 300pts. HYG remains a significant underperformer but equities look like they are playing catch up finally to credit markets - short-term target 1166 for S&P 500 given current HY levels.

This is very clearly a broad risk-asset sell-off as AUD is now down 2% on the day and commodities are getting crushed (Gold $1690).

Chart: Bloomberg

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Cognitive Dissonance's picture

The elevator also goes down folks.

Oh regional Indian's picture

The sting of the scorpion, just as you think you got away, gotcha.

Very interesting astro-links this year. What with Troy Davis on September 21st and all.

Borad sell off, probably followed by a narrow, shiney recovery.



WonderDawg's picture

Liquidation, bitchez!


lizzy36's picture

The down elevator is express only.


Double down's picture



scatterbrains's picture

what is the equivalent Bove level when the Deer re-appears?  I'm trying to calibrate.

mayhem_korner's picture



Hey Lois, why is Bove never around when the deer shows up?

Mike2756's picture

Yep, looking like a herd event.

EL INDIO's picture

Somebody should’ve written a book about the ‘deer in headlights’ event instead of the black swan.

Hansel's picture

It's Contained!™

Europe Is Fixed!™

This Plan Will Work!™

Mesquite's picture

My morning chuckle...Thanks

Quintus's picture

Don't panic.  'Investors' will come charging back shortly based on some hugely positive (and quickly rejected) rumour and stocks will soar into the close.


firstdivision's picture

FYI we hit the 50% retracement of that entire magical run up in October.

treemagnet's picture

Down in the morn, up in the noon.  Same shit, day after day after day.  Can't wait till Ben asks "whats this red button do?"

SilverRhino's picture

BUY THE FUCKING DIP .... Bitchez!!

WonderDawg's picture

I'll buy the dip in a couple of years when it's finished dipping.

Long-John-Silver's picture

Avast me Matey's! Grapple 'n board that Gold 'n Silver loot ship!

Thar givin' away t' stores today!

Take all ye can afore th' Chinese get it all! Arrrrr!

Gief Gold Plox's picture

Arrrrrrgh! Me matey's. Tis be tha familiar graph of the shiny coins on sale I tell ye. Get 'em while it be fresh yar land lubbers!

PicassoInActions's picture

we will close in minor minus today. I would say -100 to 130


LooseLee's picture

How'd that work out for ya? Dow off 248!

Mike2756's picture

Wtf is up with the spike in the Euro?

Mike2756's picture

It doesn't look like it will follow through. Some EU bank forced to repatriate?

Dr. Engali's picture

People repatriating capital.

Mike2756's picture

Not much of a rally in the u.s. 30yr given the carnage in equities.

Cdad's picture

Criminal syndicate Wall Street bankers excecuted a program:  Shank the US dollar, but [to cover] Eurodollar, Shank long dated US T bills....sound and fury signifying nothing.

Entry point on AGQ is close...really close.  Should get a nice low volume drift now down beneath the LOD, perhaps all the way down close to $51...where I'd be a taker.


The Fonz's picture

Agree with the sentiment Cdad on the silver but I wouldn't bet on silver going up when JPM just moved an immense amount of silver into its registered category. I cannot help but think they may be lining up the big guns to break silver below 30 if they can. They didn't take all that silver without being in emergency mode. Liquidation first, and if that is stopped then light volume for manipulation. First Notice on 30th of Nov. If I was them I'd use this slide to break the silver markets back before I was on the hook for massive Dec deliveries.  On the other hand it might finally break, but if it does it will be becuase the banks have lost control, and I don't think they have ... yet.


youngman's picture

Gold and Silver down big too.....Options expiry tomorrow but that should be trown out the window with what is going on in the EU and our Super duper dumb committee

DosZap's picture


As the shite continues to roll downhill, and it will.

Be prepared with lots of dry powder,because we will get the chance at 1000-1200 again shortly.Maybe even less.

seek's picture

Virtually no one will be willing to sell physical if the paper price goes down that low. Plus we'll see premiums explode, just as we have the last couple pullbacks. If paper goes below ~1350 with an imploding Euro it will (finally) be the decoupling event.

Caviar Emptor's picture

There comes a day when all the previous assumptions, about bailouts for everyone, everywhere and forever, come crumbling down. And all the positions based on that assumption have nothing but air underneath

WonderDawg's picture

And there you have it, folks. In two sentences, Caviar Emptor has summed it up.

fonzanoon's picture

Dick Bove said buy bank stocks with both hands.

surf0766's picture

Buy banks stocks foot over head.

Dr. Richard Head's picture

BUY banks stocks with head in ass...there, fixed it for ya.

Mike2756's picture

Was going to post that but figured i'd be polite, lol.

Dr. Richard Head's picture

Eh. politeness is overrated.  As is spelling and grammar.

Mike2756's picture

What's wrong with my grammar? She was doing ok just yesteday.

Tsar Pointless's picture

Meltdown Monday, currently at bat.

Turnaround Tuesday, you're on deck!

MFL8240's picture

Tyler, why would Gold be down given all that is happening?

dereksatkinson's picture

Chinese raising margin requirements which was actually announced last week.  Bears are just raiding and will probably continue to do so through expiration.


It's madness though.  Gold should be going up.

Mr_Wonderful's picture

There´s years of backing and filling left in gold.

qussl3's picture

Until we start making margin calls in gold, gold will be panic sold to get confetti to keep the players in the game.