FLASH CRASH - Part 3

We have another 98% down day today - like Monday - which was when I said the panic selling has JUST begun.

Now we have credit spreads widening - soon to covid highs.Bonds are a mess as the 10yr stays bid above 3.3% and mortgages jump to highest level since 1987.

I contend $VIX should be $42, not $32.One of my mainstay expressions:

"In lieu of rotation, there will be volatility"

Well, there sure as hell isn't any rotation in sectors, so there should be honking big volatility.

My warning from last week remains:

BRACE FOR IMPACT - I can see a case for a big flash crash now that SPX 3870 broke on way to my next 3645 PT. Should that fail, and selling has started to pick up under the surface again (beyond the breadth destruction as indicator) then 3588 is next and large SPY $262 puts have been rolled to $254 for July 15th (my timeframe as well).

Well let's just say that my "$3400 this summer" call looks ready to be moved up by a lot.