Stocks continue to fall.
The ugly market action of the last couple of weeks seems to be continuing.
But dig beneath the surface, and you see that things actually look a little different from what they did over the last several days.
First of all, U.S. Treasury rates are actually a little bit higher, breaking the trend of lower stocks and lower ates.
Spain is rallying.
The Euro is higher too!
All of this is different, and it tells a different story.
The U.S. economy is in the eye of the storm now.
Whereas previously the line of argument was: Everything was fine, if only Europe weren’t imploding, the new line of argument is: Oh crap, the U.S. economy is getting sick, too.
The increase in U.S. Treasury yields is a big tell that the panic-buying from the Europe collapse fears have subsided a little bit.
And so between last week’s bad jobs report and today’s factory orders report, and today’s murmurs about a Master Plan in Europe, we’ve seen a total swap in the conventional wisdom.
Unfortunately the new meme, just like the old meme, means lower stocks.