Bloggin Stocks reports that Globex S&P futures are trading limit down 60.00 and the volatility is elevated. The question is with Dow to open limit-down 550, why are global markets plunging?
Although money markets had shown marked improvement in the past couple of weeks, credit markets are still suffering from a lack of buyers and a swarm of sellers liquidating position in the face of redemptions from terrified investors. Dow futures are limit-down before the open. If the Dow declines 1,100 points, the market will halt for an hour. If you were looking for capitulation, this might be it.
Jeff Kearns reports in Bloomberg from New York on Futurs Limit Down.
"S&P 500 futures won’t trade below 855.2 until U.S. exchanges open, said Jeremy Hughes, a London-based spokesman for the Chicago Mercantile Exchange. Dow Average futures won’t trade below 8,224. The “limit down” suspension allows both contracts to trade above those levels, he said.
“We really haven’t had a limit move yet where we stay limited to the open,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “We may try for the 10 percent limit during the day.”
Futures trading limit downs were imposed before 7 a.m. ET, when Dow Jones industrial average futures were down 548 points. The futures for the S&P 500 were down 60 and Nasdaq 100 futures were down 84. Futures measure current index values against the perceived future performance and can indicate how markets open when trading begins in New York.
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