Did We Just Witness the End of the US Equity Blow-off?

February 2020 has been on my radar since last summer, as a lot of lines converge at this time of year under normal circumstances, and you'd be a fool to think that circumstances are normal for the global economy right now.

With the US Federal Reserve constantly pumping liquidity into equity markets to keep pension funds and other systemically important players above water, not to mention other central banks around the globe doing the same, and with investors in a manic frenzy to buy overpriced shares of US tech stock, you might consider the fall in today's indices to be a buying opportunity.

If You've been following the global economy and global events, you might think twice before assuming this is nothing. Futures for the indices are leading the fall, and the bond market has lost its voice from yelling at everyone to brace for impact. China publicly has admitted that they do not have the crown virus under control, and now Italy, Korea and Iran are falling. There wasn't much of any substance holding sentiment up before, now what's holding it up besides central banks (aka the devaluation of your currency)?

S&P500 daily (2.4% opening drop)

Dow Jones daily (2% opening drop)

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Central Banks have signaled that they are hellbent on keeping asset prices and inflation pumped by any means necessary, if for no other reason than a mad max scenario would be in the cards if the system isn't kept propped up. That may sound like hyperbole, but I'm being quite serious here. People do crazy things when they're being pushed off a cliff.

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