Offsides

I'm gonna free fall
Out into nothin'
Gonna leave this 
World for a while
--Tom Petty

Major offsides this am in the Battle for the 200 Day with stock indexes opening deep in the hole. Dow down about 500 pts and the SPX off nearly 60.

Major tell from where I sit continues to be the banks. This sector was never able to muster strength during the last lift and is now in free fall.

What's driving this? Personally, I think we're seeing early reactions to the end of free money, a.k.a. 'quantitiative tightening' by the central banks. Of course, QT will only last until CBs cave to the notion of rescuing failing markets with another round of free money.

The question is how far markets need to slip before the CBs reverse course.

no positions