The Chart That Gives Citi "The Chills"

Two weeks ago, HSBC's murray Gunn warned of "ominous signs" exuding from the US equity markets. This weekend, Citi's Tom Fitzpatrick confirmed the concerns exclaiming Travolta-esque "[we've] got chills [about the market], and they're multiplying... and they're losing control."

While fully realizing that you can find a lot of similar overlays if you look hard enough...this one gives us “the chills”.

At a time when we have seen:

– Elevated concerns about Europe and its banks (possibly even creating some US/Europe conflict)


– The most polarizing US Presidential election in modern times


– Increased “taper talk” emanating from Japan and Europe and rising concerns about the efficacy of the Central bank policy around the World and the possibility it becomes unhinged.


– A 20 basis point move in US 10 year yields in 5 days;


- A 16% move in Oil in 7 days;


- A $90 move in Gold in 9 days;


- A chart on USDCNY that looks to be breaking to the topside and a huge GBPUSD move overnight in minutes

Is this the next shoe to drop?

Source: Citi

As HSBC noted previously, a close in the Dow below 17,992 would be a clear warning that a steep fall could be underway.