The global equity markets hang in the balance now, with multiple key levels of support broken. Most recently the 2002-2003 recessionary lows of 776 as we closed at 757 on the S&P 500 today. Selling accelerated in to the close with the 776 level retested for the second time in the day and this time broken, after initially bouncing in to positive territory on a bounce from the first test that traders took the opportunity to short.
You may recall that almost a year ago I wrote about this possibility. Now we have confirmed the 10 year double top. The S&P 500 may now be poised to retest between 400-600 as the selling increases. There is some chance of a bear market rally first as the broadest US index is oversold by some measures. In either case, the world remains breathless as some of the worst selling in history destroys asset values across the board.
