Today the S&P broke below 800 and the Dow came within 100 points of its November 21st intrday low. The re-test is here!
Interestingly, most sectors are higher than they were back on November 20th – with the exception of financials which have been leading the latest down leg. In fact, this whole selloff seems to be premised on a vague fear about nationalization and the endgame for the banks.
Volume and the VIX are both much lower than the intensity we had in November suggesting the lows should hold.