Global equity markets had been rising along with crude oil prices. No more, at least not this day.

Saudi Arabia oil minister quashed hopes of production cutbacks by saying such would not happen. That was a blow for bulls as markets are once again a meat grinder for traders seeking to find a durable trend. The trading environment remains a sharply two-way affair punishing traders. It prompted Geneva Swiss Band to suggest that we’re back in conditions similar to January 2008. If that pans out, it should send a shiver down your spine.  

The old expression for traders and investors alike is “supportive news should follow the trend”. Today’s news undid any support at least for Turnaround Tuesday.

It may very well be that a Shanghai Accord of some form may take place as early as this weekend. That could be as significant as the Plaza Accord of many decades ago. Should that take place it might mean global negative interest rates combined with QE and major currency valuation changes.

I’ve been saying for some time the “upside” from previous lows was between S&P 500 1902 to 1956. We have come very close to the higher figure only to fall from it twice. Also entering the price projection game was Tom DeMark who posited the market could decline to 1789 should the S&P close below 1926 this day (which it did) or close less than 1917 Wednesday or Thursday then a sudden move lower is at hand.

And so the projecting business goes.

And, not that it matters given market sloppiness and high volatility economic data again Tuesday was weak as Consumer Confidence fell sharply to 92.2 vs prior 97.8; Richmond Fed Mfg Index fell to -4 vs prior 2; and, the Case-Shiller Home Price Index was flat as were Existing Home Sales.

Another bad report came from JPM’s Jamie Dimon who warned a 25% decline in Capital Markets Revenue was ahead. This led to a route in bank ETFs.

Market sectors moving higher included: Volatility (VIX), Treasury Bonds (TLT), Gold (GLD), Gold Stocks (GDX), Silver (SLV).