Update 1:14am EST: ES seems to be finding some support close to the figure. Euro continues to grind lower towards that 1.3095 level as expected.
Asian markets getting absolutely crushed:
Nikkei – 254
HSI – 604
Update 1:05am EST: another humorous/sad/good read: SEC is floating options to limit short selling
Update 10:13pm EST: ES futures in free fall through some key levels, no particular reasons to get in front of this, all shorting levels from earlier post are naturally invalid now considering these new lows, Will have to re-evaluate in the morning, will be rather hard to chart this news driven overnight frenzy. 23.6% retrace of the whole rally is at 800, below there nothing till 770s. Careful if you chose to trade this
Update 10pm EST: Euro-Zone GDP Shrinks more than expected , this could cause some fireworks
LONDON — The record contraction in the euro zone’s economy in the fourth quarter was even sharper than initially estimated, fueling fears that it will take longer for the currency bloc to recover from recession.
Gross domestic product contracted 1.6% from the third quarter and 1.5% from a year earlier in the final three months of 2008 in the 15 countries that then used the euro — the biggest contraction by both measures since records …
– Source WSJ
Update 9:50PM EST: ES emini now trading below daily lows, watching for reaction at 809 level, see daily analysis first chart
Good Evening Traders,
Euro broke down out of bear flag it was in most of the day and is making new lows with no support levels seen until 1.3095.
Good trading to all
Vlad