The violent US market selloff this afternoon after the Fed cut interest rates was proceeded by 9 straight days of selling in the Dow Jones Industrial Average.
Yesterday I posed the observation that the 9 consecutive days selling had been a warning of something ominous and yet unknown coming soon to the market.
But no, complacency reigned. The Fed would bail out the market the way they always do. But no, today quite the contrary. They're faith in all that was overwhelmingly "overwhelmed". The proof of that " massive surprise " was shown in the VIX, which get this rose, 74 % in just one day to 27.
My point in all this is that traders in the venerable Dow Jones Industrial Average had sniffed out all of this 10 days ago.
Sometimes broader markets show telling signs of "deer in the headlights".
This one was about big money complacency. And as todays selloff proved.. they paid harshly for that misguided misjudgment.
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