Archived IMT (2010.05.07)

MARKET VOLATILITY RETURNS as US equities drop 1.4%, FTSE-100 and Dax-30 drop 2.5%. JPY rallies across the board, while Aussie sustains broad damage, especially after the RBA reiterated overnight that interest rates were most appropriate. AUDUSD vulnerable to retesting 0.8750, AUDJPY eyes 78.80. OIL SLUMPS by more than $2.00 to 74.50. We said last night it was IMPOSSIBLE FOR A 8-9% INTRADAY DECLINE in major US indices to take place without any victims and forced selling. EVER since the VIX had its 6th largest increase ever on Apr 27, the index never fell below that 18 level,