From the record highs. The dow is now down nearly 15 . The s p is off 12. 5 . Check out these staggering figures. S p 500 companies lost another 900 million in market cap yesterday. They lost nearly 2 trillion in market cap over the last seven sessio sessions. You see rich people lost 185 billion recently. This is good. This income inequality thing. Taking care of it. This is not i also like the now were going to do this every day where we can close on change but if thats not interesting enough its like a fit bit for the market. Its not even the range anymore. Its brand new. Were talking about the full ride. We moved 100,000 points this week. It means nothing. We totalled it up for you. Lets tell you where the u. S. Futures are after what was a wild yesterday as things got pretty bad late in the day. Well try to get an explanation from our guests throughout the morning but the dow jones does look like it will oip up now 275 points up. S p 500 would open up higher as well. 33 points higher and the nasdaq opening up by 66 points higher. 280 is not what it is. Now im seeing 28. Its like money when i was a kid. Now money do you tip people ever. Come on. Oh my god. But if you give someone a dollar now in a hotel. Its not enough. Its not enough. Its ten times. It is now in my life its gone to 10 or 20 times what used to be 20 at a restaurant. 20 at a cap. Airport they do your cabs. Do you still use pocket change . Not pocket change. Dollars. I meant change. Heres a quarter for you sonny. To your point, a 10 or a 20. A couple of bucks a bag. I saw 280 today and i go oh, 280. So its starting to work. These higher level of the dow when they go down youre starting to seem less significa significant. Its been a week. Bernie sanders, he has it on for sure. Anyw anyway. China once again the big focus for the markets today. Among the headlines, Chinas Central Bank pumping 21. 8 billion into the financial system. The pboc into shortterm liquidity operations overnight. It came after they closed in the session. After the regular session overnight it was incredibly volatile. Stocks hitting a low in the morning before surging 3 in the early afternoon back above the 3,000 mark but gains were lost quickly and the main shanghai composite finished lower. Also stepping up efforts to curb speculation saying they will restrict trading and stock Index Futures. More from our colleagues in asia in a minute. Did you see this list that our guest sent over of the 12 things china has done to prop up the stock market since it started falling. Is this a lesson that you cant control everything. Almost a 12 step program. But this wasnt hasnt worked. It hasnt worked. Theres more steps to come. But all of these things, step 13rks 13 and dont they realize thats what a market does. We have the opposite case in china, in their numbers because i saw shanghai close down like 30 points and i thought thats not bad and then i read it was down 30 . One and a quarter percent is 39 points now. Its like the 70s in the United States. Got to keep score. A little bit of deal news amidst all the crazy in the. Buying cameron for 66 a share. Its 14. 8 billion transaction. Its about a 37 premium to the 20 day volume weighted average price and this is offering new opportunities to create the Industries First complete drilling and Production System so its an energy bet and consolidation at the same time that all of this this was widely predicted. Very Strong Company with solid Balance Sheets would use this to kick off i dont know if you call this a weaker player but all of these guys were higher yesterday around midday. So this were calling it how much . 15 billion but yesterday we. Were calling it 15 billion. Its a mixture of cash and stock its about 47 premium. 568. 4. So do the premium based on that. Okay. Lets check on the markets this morning and there are how many are there now . Oil is always something that we need to check and its always intere interesting its still below 40 barrel. A couple of years ago youd think at least back to 4 but its not. Its at 2. The dollar interestingly, the strength has been the problem yet we saw the euro go back and then gold, started getting a little excited that maybe this would be one of the safe havens. Our global cnbc team has the market story covered this morning. Seema mody is standing by in london but lets start with sri in singapore. You gave us a lot of color yesterday about what china did with some of the moves but when it was all said and done, at least over here it didnt translate into higher stock prices. Thats right. It acted as something of a Circuit Breaker i would say but the sense in the market was this was too little, too late. It was a good start arguably but more needs to be done and the pboc does have policy scope and the ammunition so there is room for more easing. It was a curious reaction in the regional markets because they were well received in some quarters. The nikkei, Japanese Equities were a case and point as well. But the easing measures didnt really benefit the market that needed them the most and that was the shanghai composite. It was down, today, for the fifth straight session at fresh 8 month lows. We penetrated the 3,000 handle closing 1. 3 lower and we saw extreme volatility and extreme swings, 3 in either direction. Yes in the last hour or two we heard the pboc say they will commit to pumping in an additional 140 billion yuan via shortterm liquidity operations into the markets but lets not forget we have seen capital outflows and that has caused something of a liquidity squeeze. So theyre trying to address it by these recent measures. More so than anything else. They could stabilize the market tomorrow but only at the margins. Thats where we stand in a yach asia. Let me hand it over to seema mody in london. European investors keeping a close eye on china. The active roll theyre taking to prop up the economy unveiling the Financial Instruments hasnt restored confidence today. Some saying this just tells us how dire the situation is in china. Its the fear weighing on stocks today. Were down by 1 to 2 in europe. In germany the xetra dax down 1. 3 . Germany has the highest exposure to china and makes 10. 5 of the sales in the country. The xetra dax is in bear market territory trading down by around 20 from the recent highs hit in april. I want to talk about one specific stock that is getting hit here in europe and thats transocean down about 10 . This after the company said it is seeking shareholder approval to cancel its 3rd and 4th quarter dividends as it deals with a prolonged slump in oil prices. Heres one stock down about 9. 4 in todays trade. Joe, back to you. Okay. Seema, thank you. 600 plus point reversal of fortune. Late october of 2008. That happened during the depths of the financial crisis. Were going to start the day solidly in the green but is this another head fake and should investors prepare for another bumpy day of trading. Joining us for more on where the market may be heading, Charles Parker and bill snead Capital Management ceo and cio. Good morning to both of you. Youre hear at the table so ill start with you. Can you explain what you think happened in the last hour of the day yesterday . Right, good morning, andrew. Thanks for having me. What i we saw yesterday was concern about how asia would respond, not just china but other Capital Markets in asia of both emerging market economies and developed markets to the rate reduction by the pboc announced yesterday morning and the fear here by investors. Is there going to be contagion to those markets. We didnt see the fear last night in those markets but that was a concern. We saw on our desk volume accelerate on the street in the last hour and we could easily see this. You think that was people trying to get out ahead of whatever was going to happen in china because peel didnt know. Step back going into early august, hedge funds, large investors were getting offensive but their net exposures were too large given what unfolded and they had become increasingly cautious ahead of events that could cause pain. You look at the markets how theyre setting you today and obviously you look at today and how it was set up yesterday and the head fake question becomes the issue. Do we end the day positively . What this all reminds me of is and i know its not in the extremities of what happened in the 87 crash but the friday before the 87 crash and the monday was a huge drop. 21 in one day. The next three or four weeks the swings were 5 to 10 of the market in those four or five or six following weeks and it just scared the living daylights out of all of us at the time but the reality was if you bought things the market was substantially higher in two years. What are you doing right now . Whats the move . Our move is to augment the approach that we have been take chg is the domestic economy at large and people are fleeing stocks under what i call the spook factor. The spooks are out and things are swinging and so theyre trying to extrapolate more to it. If a business has a wide moet, a strong Balance Sheet, high free cash flow, all of this stuff is going to make a bit of difference in two or three years and people will look back and scratch their head and say why was i so worried about comcast because of the oil market. Lower oil prices. 87 million millennials, it all spells a Bright Future for the United States but the professionals, those that asset allocate and those that pick stocks its been a long time since they scared us. Andrew wants to know if its going to be up or down. Is it going to be up or down at the end of the day . We dont even have the first clue even where it will be 90 days from now. We just saw this big deal. Thats a substantial deal in the midst of what seems like, i dont know if we want to call it a market crisis but something is clearly amiss. Is that something you look at and you think thats being done by strength . Theres a positivity you look at or do you say actually this is being done because the oil markets are as tough as they are and this is a defensive deal . Its a blend of both. M a throughout the entire year has been dominated not by financial spontaneous source making acquisitions but its by strategic players making acquisitions. Many times theyre creative in nature and thats why the purchaser stock price ends up going up so this is a symptom of Company Executives looking beyond the near term volatility toward the longterm and making acquisition. You listed last night 12 steps the Chinese Government has taken since the sell off started a few months ago. Add two more this morning. Right. Clearly they dont have control. Right. What astounds me is that american corporations and investors seemed to think the Chinese Government would always have enormous control. They can do all of these things. They can step in and tinker and is everybody finally learning and the Chinese Government as well that you cant possibly micromanage this the way they are . If they want to be in a market economy they have to be in a market economy . Its interesting. They remain and probably will remain a planned economy. They are trying to expand and grow at a controlled pace and is supply driven as opposed to demand driven fashion. Unfortunately they are realizing the dangers of too much debt on the National Basis where debt to gdp. What they pushed for and created and incentivized. Shadow Banking System and margin debt which is off over 40 since june. The United States went from a back water Agriculture Society in 1800 to the largest economy in the world at 1900. We had 15 recessions, three recessions, a couple of all out panics and all along, the thing that doesnt pass the smell test, if youre going to do capital i feel you have to agree to the cleansings. Cleansings are the recessions in depressions. The longer you attempt to postpone the cleansing t worse the cleansing was. Look at what happened to us. We got attacked on 911. We were going through a recession caused by the break in the tech bubble and instead of letting the cleansing process take place, we couldnt allow our foe to see us have an extended period of economic difficulty so we offered 0 interest on car loans and did everything we could and actually did cleanse in 07 through 09. It was probably four times the magnitude of the difficulty. Great point bill. Thats an excellent point in history to remind us of the situation. Charles, bill, thank you. Jim grant made that point the other day. What is capitalism without failure. Exactly. What is survival . You dont want evolutionary economics. But what is survival of the fittest is everybody lives and Everybody Wins . How do you select for a behavior thats there to reward . Its impossible to do it. That collectively makes Society Better as you move forward. Yeah. Both of you are city dwellers. I love it. So the National Dog Day. I wish i had a dog. You dont have a dog. Do you have a fish . I have a son who is allergic to dogs. I think every day about wanting a dog. You have rats, i guess. Will it be a problem i think i need to at least show a picture of my two dogs. It used to be three. I wont show the one thats passed. Are you going to do it now or later . Its a tease. Bingo. Stay tuned for pictures of his dog. No dog. No dogs but my son is a dog trainer. No kidding. Really . Thats cool. So hes down with national dog Appreciation Day. Its trending huge, national dog at a. 19. 7. Are you on firefox . I am on firefox. He created fire box . Yeah, its amazing. Anyway, coming up, charting the course. Well ask a market technician for guidance next. First though as we head to break, heres a look back at this state in history. Isnt it beautiful when things just come together . Build a beautiful website with squarespace. The s p riding a 6 day losing streak into todays session. Our next guest says that the charts tell him were not out of the woods yet. Here with a technical take on where the markets are heading. Chief technical equity strategist at bank of America Merrill lynch global research. We had a lot of fundamental analysts in and i give them all kinds of grief about the way they look in the Rearview Mirror and they never consider things that might effect the way an individual stock moves but then i kid around with technical analysts move because a flag means its going up or down and a support level either holds or done hold but neither are perfect what are you using technically to try to disearn whats going on or what the future holds . Great question joe. Thanks for having me on. Were looking at secular trends and cyclical trends. Its multiyear. Multibusiness cycle trends. Were trying to figure out where we are in that trend. We think we are in the early inning of the bull market. But whats going on right now for the first time in a long time looks like we can actually get a cyclical bear. We have seen divergences in indicators all throughout the range that occurred and all came to head last week for the price response for the first time in a long time. Whats going on right now is we think that we can have a deeper correction and we think the market finds some stability around 18 or 20. Maybe can rally up to 1965. Maybe 2040, 2050 but well be retesting the lows we think. Retesting the 1820 lows. And maybe lower. What does that represent on the high. Its about 15 for the high. But you said a cyclical bear so youre thinking we could do 20. We could. If you take that from the high its about 1700. What were saying is you could retest the break out point. So a cyclical correction is actually not a bad thing from a longer term perspective. I think what investors arent used to theyre very comfortable buying two, four, six percent dip and quite frankly most of the calls im getting now are what do i buy. Last october when we had the draw down everybody wanted to sell and the conditions were better so this environment is much like 11, monday felt like the crash. The flash crash and it took three to four months for the markets to stabilize off of those levels. I think we got more time here. Do you follow cramer . Not much. Im sorry. Hes working at that hour. Hes working at that hour. Jims recent thesis has been that when the market opens, and gets some strength, that a lot of smart people are using it to sell names they might eventually buy back lower and therefore dont necessarily look for an imminent move back to new highs at this point. Thats what you said but i would say youre correct that most people have been conditioned to buy the dips down 2, 4, 6 or 8 because we havent had a 10 in four years so the nonobvious thing to do is maybe when you get a good price for something maybe sell it and take a step back. Sounds about right. You hate to say that and certainly people in the business hate to say that that youre always long. Interest rates are always going down. You have to time it perfectly and the question becomes youre going to sell now and you think you have two or three months to go . What is your base case for a true bottom. Base case right now, retest, undercut, 1820, 1700. That would basically be a successful retest of a break out. Now if you go down and retest the break out youre hooking at 1575. You had a new market in the s p and came back at 82 and undercut it. If you have a decline of 10 or more theres been 93 of those since 1928 and on average it ends up being 19 and change. Part of what makes it so painful is we ground along really tightly. We finally have an answer to that question. We have been grinding around the same level for months and months and months. Well break out to the upside or the down side. Clearly to the down side. You look at the numbers, we keep talking about the correction year to date. We lost all of 2014 as well. If you put money to work january 1 of 2014 youre at zero. You got nothing after the big move we had last year. The dow is now down 5. 5 from january 1 of 2014. The s p is up only 1 . We could lose that in a nano second. The nasdaq is only up 8 . Theres a stronger chance that we could see something more than 10. Secular bulls. You can even