Monday, August 8, 2011
Market flash crash
S&P sinks to 1119 intraday from open of 1198, a 79 point drop or 6.5%. Unreal market action. Prepare for a tough winter everybody. Bernanke will unleash the monetary heaven within days at this point.
UPDATE: Stocks close at lows of the day, right back down to 1119. If the fed folds and announces QE3 tomorrow then its off to the races with a violent snap back rally. But how much easing it will require to put humpty dumpty together again? 1 trillion? 1.5 trillion? It remains to be seen. At this point however confidence is wrecked.
What a crazy 2 weeks.
Charting the collapse in the S&P: