Pre-market futures are way down today before trading, dropping over 1.5%. Fears over upcoming debt payments in China with its largest real estate company, Evergreen, is coming up. The Chinese market has been toppling as the government scrambles to tighten its control over businesses , with increased pressure as the Covid slow down continues to hamper the economy. The US market has crashed in a domino affect and the upcoming debit ceiling is soon to come to a vote. As always, the US will increase the debt ceiling and make payments, but how the market will recover today is up in the air.
We are getting close to the 10% market pullback as expected, and with continued weakness it could continue to drop as panic selling sets in today. However, it is a great opportunity for the market to buy the dip, as the market nears the 10% pullback support level. I wouldn't be surprised to see a sharp bounce later in the day , but will continue to trade around my position for damage control his week, as I am set up particularly long on all my options.