The Nikkei just wiped out all gains for 2010 in a mere 3 hours. Elsewhere it is not much better: Shanghai down 1.52% and Hang Seng down 1.63% at last check.And speaking of the latter, we were joking earlier that selling breaks all exchanges, but turns out we were right once again. DJ reports:
The compiler of Hong Kong's benchmark Hang Seng Index said Friday it is working to fix a glitch that has prevented index data from updating shortly after trading started.
Hang Seng Indexes Co. declined to elaborate on the cause of the error. Hong Kong stock exchange spokeswoman Lorraine Chan said the bourse has noted the Hang Seng Index has been unable to be updated, and is in contact with the compiler to rectify the problem.
The NKY has now breached the 20 DMA, the 12/22 - 12/24 gap is likely going to be retested very soon.
And here is what happens when all the upside in the market has been on vapors. When the selling starts... it really STARTS. Futures volume today was unprecedented. Unless the overnight futures brigade manages to decelarte this reversal, it will get very ugly, very fast.