The Market: Volmageddon’s Hand is on the Door
On watch for SPX 4000 by September 29, opening the door to a Volmageddon event down to SPX 3500 by October 3. Bulls should pray for an addressable financial crisis to erupt ASAP.
On July 1 in the post below, I outlined the path to a retest of the October 2022 SPX low of circa 3500, stating:
“A breakout in the 10y UST note to 425-450 would likely be the catalyst for a move down to 3500 sometime in the classic danger zone of September/October.”
The overwhelming weight of the market evidence, discussed below, points to this scenario as higher than average probability event in the next 7 trading days.