About Last Night: A market that almost fell apart

I wouldn't normally blog about a down day or why this correction is taking place - there is always a reason after the fact, this time it happens to be China. No, last night (Monday night Australian time) in the USA was a LOT worse than what it looks like. Yes: 3.9% understates the night. Why? Because leading into the market open and within the first 15 minutes of trading, we went rather close to melting down like 1987 style, with some stocks down 30% before the exchanges halted trading. What we are seeing the interplay of post 2008 changes in a rather nasty way that has now seen 2 events like this in the last year (October last year was the first). We first blogged about this in February and it returned last night. For a fuller run through, please read here (VIEW LINK)