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Dow Jones suffers biggest one day reversal of the year so far

Quite a while ago an update here noted how the US markets would probably require a catalyst of some sort to bring the rally to an abrupt halt. Well, that catalyst could have been one of the geopolitical variety and that was highlighted here a few times too, when noting those risks were at the most strained in more than 2 generations, but the markets were seemingly ignoring them. Well, they sure did not last night. The Dow Jones had traded to a high at 39,421. The subsequent slide saw it deliver a low at 38,559. The index closed 530 points lower at 38,596. As you can see, that close was barely above the lows of the day. The falls across Asia today are going to be replicated here in Europe shortly and it is doubtful anything will change that. Under the current circumstances, the US monthly jobs report may only serve as a side show later on, but it might be best to reserve judgement on that just yet. Either way, it looks like the much needed correction has now kicked off and it remains to be seen just how far this will extend. The Dow Jones futures are just now off their worst levels since the close, but not by anything that cannot change in a heartbeat. The index is right now priced to priced to reopen around 38,650 
 

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