Last week we saw a lot of volatility enter in the market.
The Chinese devaluing their currency caught the market on a bit of a surprise.
The Chinese have stated many times that they are willing to step in and prop up their market and they seem to be standing by that notion. Their export numbers were dismal so they devalued their currency to make it cheaper to buy their goods. In time if this does correct their exports this will turn to be a good thing for the world economy.
Unfortunately China has also been a bigger consumer of commodities, especially oil, and now they economic growth is slowing we are seeing a depression in commodities.
Gap down on $spy