The recent market turbulence highlights the dual nature of leverage, capable of amplifying both gains and losses. With a staggering 88% of futures SPX positions now in the red, the potential for further downside moves looms large, particularly if the selling pressure persists. As futures markets show signs of stabilization early this morning, the market’s direction remains uncertain, with outcomes yet to be determined.
Leverage works both ways. To the upside and the downside.
88% of futures SPX positions are now in the red. This could exacerbate downside moves if the market continues selling off.
Futures have flattened out here early this morning so TBD pic.twitter.com/Lno49sy0yx
— QE Infinity (@StealthQE4) April 16, 2024
It doesn’t look too stretched yet pic.twitter.com/cYv9DNH3G5
— Michael A. Arouet (@MichaelAArouet) April 16, 2024