Courtesy of ZeroHedge. View original post here.
Submitted by Tyler Durden.
S&P 500 e-mini futures (ES) just opened down over 11pts from Friday’s close and have traded below the 4/10 and 4/23 lows to trade back to their lowest since 3/8 taking out the 1350 stops. The EUR is at its lowest against the GBP since Nov 2008, closing in in the first sub-1.30 print since 4/16 with a little more pain taking us to 4-month lows in EURUSD. Gold and Silver (spot) are modestly lower relative to the 0.4% raise in the USD. Treasuries are not open yet but broad risk assets imply a considerably lower print for ES in the mid-1320s at current prices.
In CONTEXT (based on the medium-term correlation of a broad basket of risk-assets), ES should be notably lower…
and sure enough – EURUSD just broke down through 1.30 to its 3 month lows…Feb 16-> 1.2974 and near 4-month lows. Notably, EUR-USD swap-spreads have been pointing to a lower spot rate for a week or so now and as the chart below shows – indicate 50-60pips more downside before we get really excited…
Chart: Bloomberg