Yesterday it was cryptos, this morning it appears US equities are in line for the monkeyhammering.
It is unclear what the catalyst for the drop was - it occurred with significant delay from any debt ceiling talk or Manchin's statements - though some are noting the surge in JOLTS could have triggered some weakness as it may bring The Fed closer to tapering.
The dollar is spiking at the same time...
As SpotGamma notes, there is a major inflection point (support) specifically at 4490 and major support at 4440.
We think it would take some type of fundamental push to break that level.
In other words, things could get “chippy” but we don’t see things positioned for a large drawdown (>1%).
The big question is - What will Robert Kaplan do?