the market is seeing something that we are either ignoring or just dont see yet. Markets just dont crash this far and this fast for no reason. Bulls will always say its an overreaction but reality may be pointing to something more ominous.
Stupid Algo's and Coders, which all follow Momentum/TF strategies. Which ever way the wind blows, they super charge it... No wonder firms being ran by coders are useless and investors pulling out at a fast rate, but mainly it's BDC's, CLO's, Brexit, China's banking system is a giant ponzi scheme, a lot of bad stuff brewing.
The fed can turn it around at any time... Once you go down the rabbit hole and really understand the game, the fed is equivalent to a cheat code. They have so much volume and buying power, if they buy huge lots of sp500, firms front run them and start buying as well cause they see it coming, vice versa. At any time they wish to reset the cycle, they can, and at any time they want the sp500 to moon, they can. Powell pretty much came out and said, we are thinking about ending the business cycle in 2019, we are not sure yet, we will re evaluate our decision early next year. The coders are reacting, rightly so... The dilemma seems to be big money really believed they wouldn't pull the plug on the cycle so quickly, and I wouldn't be surprised if some big money got trapped, and looking for a window, so they got munchkin to do the bidding