The markets were trying to shake off the weak bank earnings this morning and a post option expiration hangover, when shortly at 9 EDT the SP Ratings Agency changed its outlook on US sovereign debt to negative.
That sent the markets reeling, and the games played intraday were remarkable indeed.
There is intraday commentary on the downgrade and its market impact here
The timing of the downgrade seemed political to me, a note from the monied interests tagged to the Ryan plan which has passed in the Republican dominated House of Representatives.
What next? I expect the markets to try and shrug this off, and take a cue from the late day buying in the futures markets which removed much of today's losses. Like a hopeless drunk, these jokers will not stop until they get behind the wheel and hit the wall.
