And Now China
Financial markets have been hit with the double whammy. First, Bernanke described the Fed’s plan for tapering asset purchases later this year and next and overnight, China reported weaker economic data and some trouble in their banking system. The markets responded with much selling on the heels of yesterday’s sell off, taking the Dow under 15,000.
The next downside target for the major stock market indices is just below their respective May lows. After that, markets are probably looking at a 10% correction or thereabouts.