Yesterday US equities bounced recouping some of the recent losses. The S&P 500 ended the session up ~1% at 5,240, however at the highs (+2.4%) it traded just over 5,300 retesting Friday’s lows and the 100d ma before the lingering effects of the systematic de-risking flows kicked in during the final hour. The focus overnight turned to Asian markets as this has been at the epicenter of some of recent weakness. In a speech BOJ deputy governor Uchida downplayed the prospects for additional tightening in the near term in part pointing to the market volatility. This sent the signal to investors that the central bank was paying attention and triggered a risk on response. Global equities rallied overnight, some of the recent violent moves in currencies began to retrace and global yields moved higher. US futures also rallied with both S&P 500 and Russell 2k futures up >1% ahead of the open essentially recouping the late day selloff from yesterday. Equities extended gains modestly after the open but have struggled to hold the bid and we’ve since faded. As we head to print, the S&P 500 is up 1pts to 5,241 (+0.0%), the Dow is down 37pts to 38,960 (-0.1%), while the Russell 2k is down 10pts to 2,054 (-0.5%). The VIX did start to move higher from the low 20’s and is back >25. A weak 10yr auction at 1:00 also didn’t help the tape.