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Late Equity Update: Extending Session Lows

US STOCKS

US stocks trading heavy, extending lows last few minutes, SPX eminis back near Wednesday lows. Russia/Ukraine tension main narrative driving risk-off tone (recent unconfirmed reports of renewed artillery firing in Eastern Ukraine making the rounds -- but note: Russia/Belarus were scheduled to perform live fire exercises today and Saturday).

  • SPX eminis trading -75 points (-1.68%) at 4394.5; Dow Industrials -506.8 points (-1.45%) at 34427.08; NASDAQ -317 points (-2.2%) at 13807.2.
  • SPX lagging sectors:
    • Information Technology -2.42%
    • Communication Services -2.22%
    • Financials -2.20%
    • Consumer Discretionary -2.07%
Technicals: SPX Still above but closing in on first support: 4354.00 Low Feb 14
  • S&P E-minis remains vulnerable, with corrective intraday rallies proving particularly shallow. This keeps the outlook pointed lower for now, with downside impetus strengthened by the failure of the contract to hold above the 50-day EMA - at 4549.15.
  • This average represents a firm resistance and a clear break would suggest scope for a stronger rally towards 4671.75 initially, Jan 18 high. The Feb 10 candle pattern is a bearish engulfing reversal, signalling a potential top and the recent move lower reinforces the pattern. This has exposed 4212.75.

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