Well, that escalated quickly!
After a long weekend to think things through, it looks like the market correction is back with a vengeance.
The S&P 500 has busted its 200 dma today, and that’s big deal (assuming it’s not rescued/bought later today).
Adding to the woes, bonds are not really rallying here, and are pretty much dead flat on the day (after being down for a while). So this is looking more and more like a pretty powerful risk off move, without a big ‘flight to safety’ to balance it out.
In other words, a loss of liquidity rather than a rebalancing.
In other other words – it looks like the correction has arrived.
Now we get to find out how the combination of fickle algo “liquidity” and massive NYSE leverage play out in these ridiculously distorted “”markets.””