Here I sit on Tuesday morning at 6:40 a.m. looking at what promises to be an extremely rough open for the US stock markets. Unless another opening-bell miracle rally in the cash market ensues, like it did last Friday, today is going to be a very bad day on the US stock markets.
Currently futures for the Dow are down -227 points from yesterday’s close, and the S&P 500 futures are down -27.
Note that in the futures charts offered by FinViz.com (below), which I really like to use, mysteriously do not record the change in reference to the prior close. I’m not entirely sure what they base off of…perhaps midnight?
At any rate, the general directions are told plainly enough. Here we see the basic pattern we saw last week: the dollar and the yen are up, gold is in positive territory (barely, but there it is), while everything else is in the dumper.
Right now, we are below the lowest levels plumbed by the “Flash Crash,” indicating that the event may have been more than a simple computer glitch (as the story is currently being spun).
I believe that we are repeating Fall of 2008 in almost every respect (except for the action of gold), which I warned about on Friday May 14th in a piece entitled Currency Swaps Spell Trouble?
It was recently announced that the Fed planned to re-open lines with other central banks, allowing them to swap for dollars.
by leweke1 
