To gain an edge, this is what you need to know now.

Worst Rout

Please click here for a chart of S&P 500 futures (ES_F).

Note the following:

  • Stocks are experiencing the worst weekly rout since March.
  • As we have previously explained, the selling going into yesterday was related to Wall Street’s positioning.
  • Wall Street and institutions simply recognize that the momo crowd had pushed tech stocks too far to unsustainable levels.
  • Many institutions and Wall Street use futures to hedge as well as when they quickly want to take a large position.  This is the reason that we are showing you a chart of futures.