Tuesday -- Possible Hedge Time

S&P E-Mini Futures:
Down but off their worst overnight levels.

News:
Blame it on last night's New Moon, Turnaround Tuesday, or a slew of bad economic reports around the globe, but things are looking a bit different today.

Imports collapsed in China.

The UK posted a deflationary CPI.

And Germany's ZEW survey fell an incredible 84%.

Elsewhere, Dow Jones reported on a troubling rise in downgrades and an increase in U.S corporate defaults. So far this year, Standard & Poor's Ratings Services has downgraded U.S. companies the most since 2009.

Not good and should be watched.

FX:
There is action in FX today. AUD is down hard on China fears. GBP down hard on deflationary fears. CHF & JPY stronger on safe haven flows.

Treasuries:
Still hinting toward higher prices, lower rates.

Energy:
WTI crude had a rough day yesterday and is trying to gather itself. NG down.

Metals:
Gold & silver showing some sympathy for copper which is down almost 1% currently.

S&P Outlook:
Three days in a row, the S&P has not been able to crest 2020.86. Not great.

Retracements since the most recent lows have been almost non-existent, so perhaps we could finally get a good one and I can put on a hedge against TVIX. Added more yesterday.

Upside targets remain the same: the 2131.28 -- 2035.73 zone, and the 2050 area.

Below I will be watching the 1980 area and the 1945 area.