Things fall apart. It's scientific. David Byrne
The speed with which the global markets are imploding is astounding. In just 2 sessions and a Holiday weekend, over 2 weeks of hard earned gains have evaporated. The European Zone is in shambles. Euro banks are hoarding dollars at an alarming rate and Central banks are cowering with them. The idea that some Fed policy ploy will matter is foolish.
The IMF is scared stiff. As the US wound down the Summer, the IMF called for austerity plans to be abandoned. The political climate is far to charged to listen. On the curve, only Bonds are reacting to the melt down. The SP futures chart is threatening a break of the 2 August lows that seemed so promising. The first hour of trading on Tuesday will be critical. Developed markets are walking the knife's edge with domestic confidences dangerously low.
We have been content to take pieces of the market out in the high volatility waves. A failure here will be bearishly significant.