Target (TGT), in its earnings report and forecast, shocked the markets with the fear that all is not well with the economy.

Is Target itself so pivotal? Even when taken as an indicator with Walmart? 

Maybe but looks very much like a trigger event, for a market that was very much predisposed to a fairly sharp decline.

You may notice on the charts that the main equity index futures came down to test the prior 'second law.'

And we'll mark it as a backtest of the low unless, of course, the markets continue to sharply decline from here.

This latest 'failed rally' seems a bit short according to our crash models. But we can keep an open mind.

Gold managed to hold some ground on a day marked by general liquidation selling.

Silver not so much.

Aren't you glad to be watching this latest market conflagration safely from higher ground?

Whenever it comes, you probably won't like what comes next.

Have a pleasant evening.

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