"...The broken wall, the burning roof and tower,
And Agamemnon dead."

W. B. Yeats, Leda and the Swan

North and South Korea were exchanging live artillery rounds over their troubled border today.

US equities were in a Daedalian swoon today, falling through support lines on the charts as if they were merely insubstantial constructs.

Surprisingly to some, so far this is just a stiff rinse, certainly to be expected after this choppy back and forth action after the long run up for the past two years on the back of the policy errors and malinvestments of the Banking system and their Fed.

The next moves if they go lower still will be much more significant. 

This is where charts prove helpful.  You can clearly see the big, big support on the SP futures chart at about 2030. Even if we should gap lower tomorrow, it only really counts if we break that support and stick it on the weekly close.

There is a similar position on the NDX futures chart, which is the key confirmation factor since it has led the way up with a narrowing phalanx of big tech names that provided a fairway for the momentum players. The key support there is at 4340, about another 30 points lower.

At some point I expect the Fed to jawbone the markets in some manner, with the designated stooge saying something essentially meaningless, but perhaps sufficient to 'whistle up a wind' in the windiness of the markets which they have blown into being.

If we break further still, it may be a long long time until September, and the stormy season in which the denizens of market crashes past tend to dwell.  The deadliest pattern is a break and a rally back that fails.   

So I would be quite careful in chasing anything here, up or down. Our markets are like the words of our politicians and economists:  it is hard to be too cynical or too skeptical about their substance and veracity.

But if we should see a more serious break in the markets, and trouble and fear in the economy, then what rough beast, its hour come round at last, may slouch towards the November elections next year to be born?

Have a pleasant evening.

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Audio Length: 00:03:29