Any Storm in a Port

Escalations in the Middle East are compounding the effects of a major strike in many of American's ports today to kick off the new month and final quarter of trading. As a result, the Nasdaq is leading markets lower, off by around 2% as I write this. 

Apple's breakout attempt higher yesterday is reversing sharply, with the iconic name down by 3.5% to threaten a serious "bull trap" on the failed breakout. In addition, as seen below on the updated Philadelphia Semiconductor Index daily chart. the chips are getting sold aggressively and are nowhere near their early-July highs, marking an ongoing negative divergence for a leading sector despite all of the calls out here for an imminent bull market melt-up higher in stocks. 

The VIX is also toying with a move back over 20, which remains a clear line in the sand between a stock market correction versus more benign action. 

Ultimately, though, the labor market is still what will likely move the needle as we head towards Friday's non-farm payroll report. However, if this longshoreman strike carries on more than a few days I fully expect it to have nasty economic ramifications which could easily spook markets as a kind of "black swan" which most were not expecting, in terms of supply chain disruptions leading to layoffs.