Another day, another massive sell off and rally. The close to the markets yesterday re-illustrated the illiquid nature of the futures markets, specifically the equity markets and long term fixed income markets.
Today certainly appears to be a corrective move both domestically and abroad following yesterday`s dramatic near record-setting selloff in the equity index markets. With the Dow down nearly 1200 points at one time and the S&P 500 off nearly 150 points, the market was headed for the single worst day in history before some furious buying staved off that dubious title.
First it was the U.S. Federal Reserve. Then, in 2013, Japan launched what became known as Abenomics. The European Central Bank (ECB) followed suit in 2014. And now the People’s Bank of China has joined the parade.