It's not just Japanese stocks that are in trouble. The Dow Industrials futures just lost 15,500 - the lowest level since the debt-ceiling lows mid-November and down over 1000 points from 2013's closing highs. The terrible ISM print triggerd wholesale buying in bonds and bullion and selling of stocks and the USD as the Dow broke below its 200DMA. VIX has hit 20% this morning and credit markets still suggest the S&P is 60-70 points rich.

The Dow is down 1000 poinst from its highs...

and below Debt-ceiling recovery lows...

as the Dow drops below its 200DMA...

The Nikkei is getting nuked and now trades over 2,000 points from its highs and over 1100 points "cheap" to the Dow...

Bonds are well bid... as is bullion...

It seems the taper is dragging the US wealth effect lower faster than Philip Seymour-Hoffman's drug dealer's income.

Charts: Bloomberg