Both moves yesterday fell short. There was no gap fill to the upside, and no breakdown as the market failed.
Below 1628.05 today could get ugly. Unless the market can bounce to 1650 or close the gap at 1656.78 it is more than likely saying that it's very weak and is also telegraphing bad news to come out of Syria.
The only comfort lies in that futures were tame last night, though Europe is getting smacked. Also there is a large move in both the Aussie and Kiwi dollars today. Their charts just look like they were ready to move.
At some point, the 200-day moving average is going to come into focus if the market can't get off the mat. It is currently 1563.57, in line with the June lows of 1560.33, a double target if you will.
This story from Bloomberg -- Emerging Nations Save $2.9 Trillion Reserves in Rout -- contradicts the current emerging market narrative. Emerging markets are doing the right thing by raising interest rates rather than defending their currencies during the worst rout in five years.
The current narrative would lead us to believe that EM nations are imploding. Perhaps their stocks and in rapid decline, but the countries are far from imploding. If they continue to run conservative balance sheets and let interest rates adjust, they just may come out of their troubles better than they were.
Meanwhile the US is playing policeman to the world, something that was never envisioned by its founders, and throughout history has often marked an empire in decline.
And 150 Million People Have Decided That Standard Web Browsers Aren't Safe Enough to protect themselves from their governments' spy programs.