Markets Plunge as Downside Bias Holds Strong
The markets gave no reason to doubt yesterday's downside bias, plummeting sharply after opening. The US Dollar Index (USD) rose to 99.335 in September, while Crude Oil futures for October reached $103.39. However, this was not reflected in the financial sector, as the 30-Year Treasury Bond for December fell by 21 ticks and traded at 106.12.
The S&P 500 Emini contract for September also took a hit, losing 91 ticks to trade at 7602.25. Gold futures for December slid even further, dropping to $4315.00. The divergence between these assets highlights the lack of correlation in the market, with some moving up while others fall.
Market analysts are paying close attention to upcoming events, including the ADP Weekly Employment Change and the Empire State Manufacturing Index, both scheduled for release at 8:15 AM EST. The 2-Year Treasury Notes (ZT) have also caught attention, showing a reverse correlation with the Dow Jones Industrial Average.