Volatility, which has not existed since the beginning of the year, is reappearing intensely on American equities. The 800 points lost during the August 5 session prove that investors have become very nervous, following the rise of concerns about the economic battle that is also drifting into currency warfare.

For a week now, the scores have been high, the Dow Jones has dropped by 4.3%, dragging all the components into a dark red, like Intel, which fell by 9%. Only two lines, Merck (+1.3%) and McDonalds (+0.82%), honour their status as defensive values.

Graphically, in daily data, prices, long in hesitation mode on the highest historical highs, eventually dropped out of the market. This decline is accompanied by a sharp increase in the Vix, symbolizing significant intraday deviations. The decline has allowed the index to move closer to the relevant area of 24,800 points and more precisely from an intermediate point to 25,300 points, both of which appear accessible in the current movement. A sharp bullish reaction, beyond 26,540 points, would be required to eliminate all short-term downside risks, but this assumption is unlikely to materialize.