Although we were hovering near the lows of the day throughout the afternoon, the indices broke to new session lows about an hour before the final bell, and the ensuing selling was relentless straight into the close. This is truly becoming a crash of historic proportions, second only to the nine day of losses in October of 1987 which totaled 29.57%. As it stands, the S&P 500 has lost 24.99% over the past nine days.
People are starting to get really frightened and want out of this market no matter the price they have to accept to do so. There’s no doubt that we are due for a reflexive rally, but with confidence levels so low, no one is willing to step up to the plate and try to make that happen.
This is truly remarkable action, and trying to apply logic or reason to account for this pressure is futile. The best we can do at this point is to simply stay out of this market’s way and do our very best to make sure our capital is safe. This action will only further set us up for some huge gains down the road, but for the time-being, there’s we see no reason to be risking our capital into this mess.