The only mystery is why it took stocks so long to start doing what they’re doing. From Wolf Richter at wolfstreet.com:
But the mayhem started beneath the surface in Feb 2021.
Stocks on Friday turned Thursday’s blistering beautiful rally into a miserable dead-cat bounce. And it put some marks into the sand.
The S&P 500 Index dropped 3.6%, the worst drop since June 2020. The index is down 14% from its 52-week high and has turned red year-over-year (-1.2%). For the first four months this year, the index is down 13.3%, the third-crappiest beginning of a year, after 1932 (-28%) and 1939 (-17%).
The real fireworks took place at the Nasdaq, whose composite index plunged 4.2% and is now down 23.9% from the its intraday high in November, and down 11.7% year-over-year. For the month of April, it dropped 13.5%, the worst month since October 2008, which was the month following the Lehman bankruptcy.
STRAIGHT LINE LOGIC 