S&P 500 e-mini futures (ES) just opened down over 11pts from Friday's close and have traded below the 4/10 and 4/23 lows to trade back to their lowest since 3/8 taking out the 1350 stops. The EUR is at its lowest against the GBP since Nov 2008, closing in in the first sub-1.30 print since 4/16 with a little more pain taking us to 4-month lows in EURUSD (now within 20pips of 4-month lows). Gold and Silver (spot) are modestly lower relative to the 0.4% raise in the USD. Treasuries are not open yet but broad risk assets imply a considerably lower print for ES in the mid-1320s at current prices. WTI has opened with a $95 handle crossing its 200DMA to its lowest since 12/20.
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In CONTEXT (based on the medium-term correlation of a broad basket of risk-assets), ES should be notably lower...
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and sure enough - EURUSD just broke down through 1.30 to its 3 month lows...Feb 16-> 1.2974 and near 4-month lows. Notably, EUR-USD swap-spreads have been pointing to a lower spot rate for a week or so now and as the chart below shows - indicate 50-60pips more downside before we get really excited...
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and WTI at its lowest price of the year with a $95 handle and below its 200DMA...
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Chart: Bloomberg