Courtesy of Blain.
Indexes gapped down, continued to sell off for the first 90 minutes of the session, then maintained a highly negative posture the rest of the day. The S&P 500 fell 1.81% while the NASDAQ sunk 2.41%. The zombies have yet to dig down to our server, and the aliens have not yet invaded, but certainly the past 2 sessions have not been kind. Global markets lost a record $2.08 trillion on Friday, according to Howard Silverblatt of S&P Dow Jones Indices. U.S. markets accounted for $830 billion of that loss, he said.
“I think you’ve got some technical damage here and it’s to be expected. The size of the moves in the currency markets are order-of-magnitude larger than the stock market’s,” said Art Hogan, chief market strategist at Wunderlich Securities. “That’s a hard thing to catch up with, and the knock-on effect that it has.”
Standard & Poor’s announced Monday that it had lowered the United Kingdom’s sovereign credit rating from “AAA” to “AA,” citing last week’s referendum.
A clean, concise writeup on Brexit from Fidelity if you want to do a deeper dive into the subject.
The S&P 500 fell to the 100 day moving average Friday; today is sliced right through that level along with the even more important 200 day moving average. The NASDAQ is in all sorts of technical trouble. Here are longer term views of the main indexes.
Not a shocker but the NYSE McClellan Oscillator is quickly in oversold territory.
Wow! 10 year Treasury yields sub 1.5%.
Here is a 20 year chart of the British pound to show the scope of the recent selling.
Even as stocks sold off, the CBOE Volatility Index declined. While that might seem counterintuitive, it may just underscore how much traders overreacted on Friday, sending the VIX up nearly 50% in the biggest one-day percentage jump since 2011.
Amazing volatility in Barclays (BCS) which rallied sharply middle of last week anticipating a “Remain” vote, and now getting pummeled.
App maker Twilio (TWLO) – which IPO’d last week to great success – bucked the trend today.
