

It's not as big as Monday's crash, but it more than wipes out Tuesday's dead-cat bounce.

The losses are starting to add up.



According to FactSet data, 58 of the S&P 500’s components are in a bear market, meaning they are trading at least 20% below their 52-week high. More than a dozen of those components crossed the 20% threshold with their Thursday drops.

The financial media finally noticed that the bond market matters.



The 10-year Treasury yield briefly hit a four-year high of 2.88%, renewing concerns about inflation and higher interest rates.

"The bond market has definitely got the stock market's attention," said Ryan Detrick, senior market strategist at LPL Financial. "Is the bond market telling us something we don't know? Is there more inflation down the road than we're expecting?"

That's what they want to believe/sell you.

What is actually going on is what I explained on Monday: The Fed is shrinking it's balance sheet, while at the same time China has started selling it's dollar-based debt... Plus, the ECB tapering means less buying from Europe and a falling dollar.

They don't want to acknowledge this because it would call into question the validity of the nine year bull market, because it means it was engineered by the central banks.

It get's even worse if you take into account that the second longest bond bull market in recorded history, and the longest since the 16th century, just came to an end. That leaves us entering a long bear market in both stocks and bonds.