Pre-Market ETFs Signal Huge Drop – Circuit-Breakers Loom

SPY – the S&P 500 ETF – is trading down 6.5% this morning, well below the 5% limit-down in futures…

Where are the circuit-breakers:

During US trading hours (Cash)

• Level 1: 7% fall to 2549.48 before 15:25EDT/19:25GMT will prompt a 15-minute pause.

• Level 2: 13% drop to 2385.00 before said time will introduce another 15-minute pause.

• Level 3: 20% decline to 2193.10 within the time will shut the markets

NOTE: Only the 20% rule applies to the final 35 minutes of trading.

During US trading hours (Futures)

• Level 1: 7% fall to 2546.50

• Level 2: 13% drop to 2382.00

• Level 3: 20% decline to 2190.00

In cash, we are getting close…