110-Day Streak Is Over - S&P Drops 1% For First Time Since October

The S&P 500 is down over 1% this morning. While in the old normal that would be nothing much to note, in the new normal, this is the biggest drop since October 11th!

The 110-day streak without a 1% drop is over... this was the longest streak since May 1995

Below is a look at historical streaks of trading days without a 1%+ decline going back to 1928:

VIX topped 12.5 for the first time since february and is breaking towards its 100DMA...

And for those expecting The Fed to step in and save the day... Don"t hold your breath!

Don"t care about stock market fall itself. Care abt potential financial instability. Stock market drop unlikely to trigger crisis. #AskNeel https://t.co/Cv7ENuJuqU

— Neel Kashkari (@neelkashkari) March 21, 2017

And sure enough

Nasdaq Now More Overbought Than At 2000 Bubble Peak

Sometimes you just have to laugh...

Minneapolis Fed"s Neel Kashkari said earlier...

"we are keeping our eyes open for asset prices to try to look for signs of bubbles” but admitted that it is "very hard to see asset bubbles in advance."

Indeed it must be... if your salary depends on it.

The S&P 500 has now gone a stunning 50 days without a 1% swing...

The S&P 500 Tech Sector has gone a record 14 days without a single loss...

And the NASDAQ 100 index is now at its most overbought since 1992 - most notably more overbought than at the peak of the dotcom bubble in 2000...

Hey, Neel, do you see the bubble now?

How about now?

But don"t worry, earnings expectations must be soaring to support this exuberance, right?

Wrong!

Finally, as Bloomberg"s Cameron "macroman" Crise notes, if you’re looking for another reason to get bearish US equities, try this: the ratio of equity to bond returns is approaching all-time highs in data going back 29 years.