Many market axioms are beaten to death but I don’t think that one is repeated often enough.
In the past two weeks the correlations in markets have begun breaking down. That meant the rules of the game were different. Headlines were crossing and traders were expecting it to mean one thing but the opposite happened.
At the same time, Japan and emerging markets became unglued which has shattered confidence.
When traders see clear reasons for moves they can react and analyze. When the pieces don’t fit, traders quit en masse. This is what contempt looks like.