A massive 8.9-magnitude earthquake struck Japan overnight, the most powerful to hit the country in more than 100 years and the fifth largest quake in recorded history. The quake, whose epicenter was about 80 miles off the cost and 200 miles away from Tokyo, sent a tsunami miles inland, sweeping away houses and cars like toys. There are so far 300 recorded casualties, but many more are feared, according to CNN. There have also been a steady stream of aftershocks following the quake, the largest measuring 7.1 on the Richter Scale. Given the massive scale of the earthquake, there have been tsunami warnings sent out to at least 50 countries bordering the Pacific, including the Western United States, Canada, and Hawaii.
The massive earthquake has added to risk aversion in the already fragile markets, and despite paring some overnight losses early this morning, the futures are once again turning South. Japan faces a long and daunting process of picking up the pieces, and the markets likewise face a difficult stretch. After breaking through first support overnight, the next support level where the market could find some footing is the 1275 area in the S&P.
For market and stock specific commentary, watch Scott Redler’s Morning Call video below.
*DISCLOSURE: Scott Redler is long BIDU, AAPL, GLD; SPY, SLV.
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