We are currently about 20 ES points above the weekly low of 4110.50 here with two hours to go in the cash session. The issue being discussed is why the market reacted this way to an NYT report that had been out before that liquidation. Some outlets speculate that the Bloomberg report of the same nature about the tax proposal may be taken as a reinforcement, but It is all a bit weird and at present all I can go on is the tape and the negative NYSE tick. Breadth is moderately negative and the selling is so far a string of single prints. The earlier balancing session had perhaps ES 4140 as an area to watch. Beyond that, we still have the weekly 4100 hedge to watch. You would suspect there will be some walking back of this if the market doesn't perk up soon here. We are currently bouncing and NYSE tick is positive so we shall see.
