Extreme, news-driven volatility continues to dominate the action. Tweets from the President claiming the Chinese called and “want a deal,” counter-claims by the Chinese that no such calls took place, and ever-lower Treasury yields keep things swirling in what is essentially a very volatile price range that is now slightly more than three-weeks in duration.
The concrete technical catalyst for today’s bounce off the lows came in the form of the Dow bouncing off its 200-dma. Falling Treasury yields may also provide some impetus to the idea that the Fed will soon lower rates, perhaps even aggressively so. In any case, as things looked to get ugly this morning, it only brought about a visit from the Ugly Duckling.
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