After surprises in the British Euro exit referendum, US stock futures are getting demolished.
S&P 500 futures were down as many as 75 points to as low as 2,030 while Dow futures were off more than 550 points to around 17,400. Both S&P 500 and Dow futures were down more than 3.5%.
The VIX has been crushed, the price of insurance has plunged, the economy is roaring and fear is just a distant memory it seems. Now is a good time to plug in a fresh three weeks of closing S&P data points for some analysis. As you can see below, most of the projections are up or sideways except for notable matches to 2014 pre-correction and 2007 pre-meltdown.
A month has passed since we compared the S&P 500 drop to the two similar periods from 15 years ago, here is where the market is right now relative to the long term projections posted in August. So far the trend has been pointing down and considerable resistance has been built to the upside due to not being able to reclaim the long term moving averages. There is plenty of room for false breaks in either direction and it is entirely possible that volatility will dry up and it will drift around in this new channel for a couple weeks (boring).