Hawkish Kaplan Comments Send Dow Crashing Down 500 Points, VIX Above 16

"No brainer?"

The latest leg lower in stocks appears to have been triggered by The Fed's Kaplan who sounded notably hawkish:

  • *KAPLAN SAYS CONCERNED TAX CUTS WILL LEAVE U.S. MORE LEVERAGED
  • *KAPLAN: IF WE WAIT TO SEE ACTUAL INFLATION, WE'LL BE TOO LATE
  • *KAPLAN: BASE CASE IS FOR 3 RATE HIKES IN 2018, COULD BE MORE

This is the market's biggest single-day drop since Brexit.

The Dow is down over 500 points...

 

And VIX is back above 16...

 

After Friday's melt-up, we noted that BofA warned of "the biggest sell signal in 5 years"...

Trannies and Small Caps are now up less than 1% YTD...