Reason(s) for market drop.
'Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 31, 2018. Dow drops 500 points
16 Hours Ago | 02:52
Vision is always clearer in the rear-view mirror, but this particular sell-off in stocks was pretty easy to spot and shouldn't really be surprising anyone.
A variety of indicators — sentiment surveys, valuation readings, money flows into stock funds — have been screaming sell-off for weeks. That many investors weren't paying attention is pretty normal. When the water looks warm and inviting, everyone wants in the pool.
However, stocks hit a tipping point in recent days when government bond yields started surging, indicating to investors, late though it may have been, that it was time for the market to take a pause.
"We've all talked about how the market does need some sort of capitulation, even it's just 3 percent," said JJ Kinahan, chief market strategist for TD Ameritrade. "Also, people are looking for an excuse to sell. More importantly, people are looking for an excuse to take profits."
They found it once the 30-year bond eclipsed 3 percent and the benchmark 10-year note took out a high that has stood for four years.
But they could have noticed sooner and missed some of the damage caused this week, which featured a sell-off that topped 600 points Friday afternoon on the Dow industrials.'
https://www.cnbc.com/2018/02/02/violent-market-selloff-was-pretty-easy-to-spot-and-long-time-coming.html