The broader markets gapped lower last Monday and continued their selloff throughout the trading day on news that China retaliated by devaluing its currency.
From the high set on Friday July 26th, when the wrong way option traders loaded up on call options (bullish bets), various broader market indices declined anywhere from 5 ½% to 7 ½% to their respective lows last week.
On Wednesday, the broader markets gapped lower again, and continued to drop. Bonds were soaring higher (interest rates dropped sharply), and it looked like a continuation of the selloff was going to send the S&P 500 and the NASDAQ 100 back down to their respective June lows. The Russell 2000 made it there.
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