The S&P 500 ended down 2.36% on the session on the heaviest daily volume since September:
SPY (Daily)
The current market situation looks very similar to the August decline before the massive gap lower in equity futures on August 23/24:
- Breakdown from a multi-week period of consolidation
- Series of lower highs precede the decline
- Accelerating volume
- High volume breakaway gap with close at session lows on a Friday (August 21st)
With the S&P teetering near an important area of support/resistance, Sunday night’s futures trading session shapes up to be an intriguing one as the end of 2015 looks set to be anything but placid.
An interesting statistic via @RyanDetrick:
When the S&P is down at least 1% on both Thursday and Friday of the same week the next trading session was higher 60% of the time with 7 of 20 instances experiencing a move of at least +/-3%. Buckle up because the volatility may just be beginning.