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The biggest problem is the systemic long. Any decent shock gives VaR implosion.
Fragile
SPX futures basically reversing the bounce from yesterday. 6600 is the big short term level. The 50 day comes in right on that level. A close below, and 6500 is the next support, followed by the 100 day at 6400. A lot of damage was done on Friday, so this is a fragile market at the moment.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.