Troubles were building up over the past year especially given the Fed’s desperate desire to raise interest rates.

Their folly is due to having left monetary policies at “emergency” levels for far too long.

After all, according to their logic, economic conditions have been “awesome” since the recession ended in early 2010. They then chose to leave QE 2 and 3 in place allowing bulls to get hooked on this drug. Removing those 6 years too late leaves addicted bulls unprepared for the withdrawal.

Thursday the ECB’s Mario Draghi was counted on to cut interest rates further, and when he didn’t, European stock, currency and bond markets were shell-shocked. The reaction was a hissy-fit leaving markets with massive declines.

Again, selling carried over to U.S. markets where Fed Chair Janet Yellen once again delivered unexpected “hawkish” testimony to congress saying in part “the U.S. economy is nearing “full employment”. Translation: “We can go ahead and raise interest rates”. In the U.S. stock prices fell and interest rate in bond markets rose sharply.

And lastly, terrorism haunted U.S. investor psyche as the U.S. administration struggled with PC description of just what constitutes workplace violence or plain terrorism. 

Globally stocks fell sharply and bond yields rose the most in 6 months.

Market sectors moving higher included: Gold (GLD), Gold Stocks (GDX) and Brazil (EWZ) due to possible impeachment proceedings which won’t cure what ails them. And, not much else.

Market sectors moving lower included: Everything else.

The top ETF daily market movers by percentage change in volume whether rising or falling is available daily.

Volume was heavy on selling and breadth per the

WSJ was negative.

It’s possible the long delay in moving off “emergency” monetary policies is causing much stress for QE/ZIRP addicted bulls.