I was going to post something cute like a baby crying or something that reflects "baby bulls" having a fit over not getting their interest rate cuts -- but, let's just leave the humor aside.
It's been pointed-out here over the last month that bond yields were rising and that action was heralding a no rate-cut policy. Standing pat on interest rates seems the most likely scenario, as I don't think the Fed really wants to take a real estate market already in rehab to the ICU by raising interest rates.
There wasn't much in the way of "deal news" to help stocks stave-off selling. The research note from Morgan Stanley suggesting that all European stocks should be sold, combined with the ECB raising rates, sent a chill down the spines of bullish investors. And here everyone was worried about Asia markets led by China. But like most sell-offs, this one came from an "out of the blue" direction. With so many world markets highly correlated in current trends, a global market decline is the more likely result.
We're going to abbreviate this comment today since we have chart work to do. Let's hope for a better Thursday.
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