Dow Drops To 17-Month Lows As Hope-Filled Dead-Cat-Bounce Dies

The last 2 weeks in markets…

And to all those who took Cramer’s advice to buy the dips…

Some big moves this week…

Dow Industrials lowest weekly close since April 2014

Dow Transports lowest weekly close since May 2014

S&P 500 lowest weekly close since Oct 2014’s Bullard lows

Nikkei dumped over 7% this week – worst week since April 2014

Utilities collapsed 5.1% this week – worst week since March 2009

Financials lowest weekly close since Oct 2014’s Bullard lows

Biotechs lowest weekly close since Feb 2015

Investment Grade Corporate Bond Spreads worst since June 2013

Treasury Curve (2s30s) flattened 6bps today – biggest drop in 2 weeks.

JPY strengthened 2.4% on week against the USD – strongest week since August 2013 (up 4.5% in 3 weeks) – major carry unwind!

AUD plunged 3.5% on week against the USD – worst week since January 2015 and worst 4-weeks since Oct 2014 – China proxy

So before we start, Japan was really ugly…

And some context for the US equity index drops…

With everything red year-to-date… (and since the end of QE3, only Nasdaq is clinging to the green)

A quiet Friday before Labor Day weekend provided no juice for momo ignition and apart from a brief algo-driven pop on payrolls, stocks were a one-way-street lower…until the late-day VIX-smash ramp which closed ugly…

And Futures show an ugly night turned even uglier…

On the week, evereything is red…

Dow Futures give us some context for the last 2 week’s moves. Bounce dies at Fib61.8% retracement, breaks through 50% and makes lower high as today tested post Black-Monday lows…

FANG is FUBAR… (post FOMC Minutes)

Financials continues to get hammered (as investors rushed to the safety of Homebuilders this week!?!) – but the panic-buying in the last hour saved it from being a lot worse…