SPX and NDX are over-extended compared to equities around the world.
Today sellers took control and American equities experienced the largest day drop in 4 months. Nobody knows if this selling will continue tomorrow. Trading in Asia and EU will feed the systems important information.
The strategies R Option and R Option Mini have open trades and currently can manage a -3% on SPY and QQQ from the open trade price.
The S&P 500 Index sank more than 1 percent for the first time since Oct. 11, with the selloff deepening in the final 30 minutes of trading after Reuters reported North Korea would pursue accelerating its nuclear program. Banks led the rout throughout the day, tumbling the most since June as Treasury yields tumbled and Morgan Stanley warned its fixed-income trading won’t pick up.
Industrial and material shares slumped as House Republicans warned failure to pass a health-care bill on Thursday could imperil tax and spending reforms. Oil resumed a slide as U.S. crude stockpiles are forecast to increase. Gold topped $1,240 an ounce on haven demand.