It is a shame that the US indices did not close the sharp losses it did early in the trading session, because this only gives more cause to nervous market participants to bail out tonight as they still see a higher S&P500 index. A higher S&P500 in the midst of carnage across the materials and energy sectors means the carnage is taking its turn rotationally...and as long as people start getting anchored to a possible 3000 on the S&P500 on a probable recession, the slow train wreck in S&P500 putting up a stronger resistance to a large fall would imply likely downdrafts across all sectors yet to feel the full brunt of the bear - and the financial and energy sectors come into that focus.
I did tell you to watch Gold breaking $1790 and if so more pain across gold stocks. I did caution on BHP breaking below $40 and it did today registering a 3.45% loss to $38.66 and poised to scale lower to the mid 30s as I had forecasted a week ago.
