When Will It End?.....2.11.16

Another day, another 250 point drop. With Monday being a holiday and the markets closed the odds are for more red on Friday so gird your loins and prepare for the worst. We've already broken main support levels and if you look at the China markets (FXI) and Europe (EFA) you'll quickly see the grim state of the global situation. What the catalyst will be that reverses the current slide remains to be seen.
Meanwhile M3 has managed to keep its head above water in both the short term momentum and mean reversion modes although the equity lines are weak to negative suggesting this is not an ideal time to go big.  Note that the 60 day Skew chart reveals that the markets negative bias is in the extreme and it is typically at this level that we should see a momentum reversal. Unfortunately, that should is only a matter of probability and not an absolute.  Better to wait for the actual turn.