After last nights plunge in the futures markets, today stocks opened markedly lower. At the time I am writing this article, the Dow Jones Industrial Average is down over 200 points.
More importantly than what is happening in the stock market, is there appears to be a very large move into the perceived safety of the bonds, with the US 10yr yield now at 2.25.
Cash is also moving into gold, and silver.
It appears that the mainstream narrative behind the selloff is "political challenges" now facing our president however, this feels more like a real capitulation in the markets to me. This market action, what we are seeing right now, is something that we need to pay attention to.
On the economic front, it is being reported that mortgage applications plunged by 4.1%, and this could be a signal that the real estate market is also in trouble.
Gregory Mannarino