Wasn’t it just two weeks ago that we were inundated with stories of a V-shaped recovery and a Goldilocks scenario of a soft landing for the U.S. economy – not too hot, not too cold?
The markets go up every week, right?
The good old days are right around the corner the ultra bulls cried.
Well; maybe not.
In my view, certainly not.
And Thursday's roller coaster market ride underscored that we are not out of the woods yet. Yes, the sunlight is piercing through but its still pretty dark. Issues remain that won't be easily solved.
So what happened yesterday?
It was a perfect storm (to say the least). There was a crisis in Greece complete with violence, a very anxious and nervous market, and maybe a trading glitch/error/anomaly that resulted in a plunge downward.
This is how markets behave when fundamentals are still weak; anything can trigger a major panic.
It doesn't really matter if the massive spike down mid-session on Thursday was an error or not. Regardless of the breath-taking ten-minute plunge and recovery, the market was still reacting negatively to the heightened crisis in Europe ending the trading day down 3.2 percent.
In a conversation I had with David Faber on CNBC's special coverage yesterday, he used the term "bifurcated market"; a perfect summary. Yes, there was a technology issue mid-day, but there was also a reaction to real concerns. Almost nothing was spared. The sell risk attitude was widespread with the VIX index hitting its highest level in 12 months. (You can see the entire interview here.)
It was pretty wild out there.