Earlier, we highlighted a note from Miller Tabak chief technical market analyst Jonathan Krinsky, who said the S&P 500 was at a “critical juncture.”
The index was at risk of breaking below a long-term trend line. With today’s declines, it has now fallen below that line.
ED&F Man Capital managing director Tom di Galoma alerted us to this in an email.
Check out the chart below.
In the absence of any economic data releases today, the big story continues to be the fiscal crisis in Washington, D.C. and the effect it is having on markets.
In particular, the Treasury bill market is going wild. Short-term interest rates are blowing out as traders continue to price in increased chances that the government fails to raise the debt ceiling in a timely manner, and the Treasury is forced to default on a coupon payment.