Dow 11,000 The Wrong Way As ES Drops 3% From Highs

Well it was fun while it lasted. Utilities now the best performers on the day as Financials cross down towards the red. Consumer Discretionary -2.6% as we lose Dow 11000 and HY and IG credit is dropping rapidly. Of course the pschological impact of a quarter-/month-end close below 11,000 may be too much to bear for the PPT, so tread carefully - though we note broad risk assets are all selling off and catching up to stocks here.

It seems once we had retested VWAP (red line) a few times from below it was risk-off (though we dropped to more than 3 standard deviations below VWAP which is unusual) but ES is still a little ahead of other risk assets for it seems for once equities are leading risk down.

Chart: Capital Context


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