2:14 pm EDT:  While we did get a more than ten point tradable bounce after hitting 1052.25 early, the second trip down to test the overnight low proved too much and the ES has sold down to just below monthly S1 at 1042.00.  Next support is long term pivot confluence from 1033.75 to 1035.75, then volume support at the Nov 2 09 swing low at 1025.00 on the ES continuous futures chart.  We won’t necessarily get there today, but probably some time next week. 

The US Treasury is benefitting from this, as the 30 Year yield finally broke through long term trendline and moving average support, which will make debt service costs a bit cheaper for it on the 10 and 30 yr issues its auctioning next week.  To put things in perspective, it took a 9% correction in equities to facilitate a 2% rally in T-Bond futures.  For now, it looks like this correction will eventually reach 15% or more, which makes for at least a 980 (ES) downside target.  That doesn’t mean there won’t be large up days, but the prevailing trade will be to sell bounces, and that will likely last for several more weeks.