While there is little news aside from a modestly disappointing pending home sales print, risk assets in general are bleeding quite notably. USD is strengthening and Treasuries are rallying as commodities slide and stocks tumble. The chatter is a rumor that Fitch is about to downgrade the US below AAA. We find this highly suspect as there would be hell to pay for doing this two weeks before an election (and Fitch themselves have said that there would be no downgrade until 2013 at the earliest [3]). Of course, this is merely the market gurus attempting to come up with a narrative to explain yet another intraday sell-off, which is now coming with dangerous regularity for the bulls.
Risk-Off - quick, we need a narrative!
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Charts: Bloomberg