S&P 500 futures have extended declines to 0.8% in a broad selloff in global markets, including precious metals and fixed income.
It's a 'sell everything' day as the market senses central banks running out of patience with inflation and high oil prices.
This isn't a great look but you can see the support down at the November low of 6525 but if that breaks we're back to September levels.
The picture in Europe looks much worse with main index down 2-3% across the continent. The UK FTSE 100 is down 2.9% and has cut through the March low.
What's interesting in all this is that overnight Trump attempted to de-escalate and rebuked Israel:
Israel, out of anger for what has taken place in the Middle East, has violently lashed out at a major facility known as South Pars Gas Field in Iran. A relatively small section of the whole has been hit. The United States knew nothing about this particular attack, and the country of Qatar was in no way, shape, or form, involved with it, nor did it have any idea that it was going to happen. Unfortunately, Iran did not know this, or any of the pertinent facts pertaining to the South Pars attack, and unjustifiably and unfairly attacked a portion of Qatar’s LNG Gas facility. NO MORE ATTACKS WILL BE MADE BY ISRAEL pertaining to this extremely important and valuable South Pars Field unless Iran unwisely decides to attack a very innocent, in this case, Qatar - In which instance the United States of America, with or without the help or consent of Israel, will massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen or witnessed before. I do not want to authorize this level of violence and destruction because of the long term implications that it will have on the future of Iran, but if Qatar’s LNG is again attacked, I will not hesitate to do so. Thank you for your attention to this matter. President DONALD J. TRUMP
I take that as the biggest signal yet that he doesn't want escalation and badly wants to stick to his 4-5 week timeline for the war.
I imagine that today's price action will further underscore that but one of the lessons of war that have learned over and over is that once the fuse is lit, it's tough to extinguish.
