After teasing and flirting with us for a few months, including yesterday before Lucy pulled the ball away from Charlie Brown and many hours today, it appears the citadel that is S&P 1040 has been overtaken by the barbarians. The first few generals have been taken out, and now we see if the rout snatched away in the last 25 minutes yesterday may come to fruition. Can the defense stand as the miracle buyer shows up in the closing half hour 2 days in a row? Seems too cute.
I've obviously added back some downside (index) hedges once more with 1040 broken but not as aggressively as yesterday since the headline risk is rising exponentially in the next 36 hours. If not for those events that cause bipolar reactions, the technicals scream bad things.
Unless you are counting on China PMI to save you overnight, don't be this guy.