US employment news is still reverberating worldwide, with futures down when I last looked. European markets appear to be taking a beating on the labor day holiday in the US.  It may even be hubris on my part to think that the overnight futures reaction is US related.  It could just be the continuing reaction to news from Europe that is unrelentingly bleak. Still, I got that macro-call wrong,  although I remain a little surprised by the market reaction to well-known news. Because of the volatility, it is becoming a little harder to comprehend how large  a move (and for how long)  in market index prices constitutes a meaningful market reaction.

The notion that markets and prices will react rationally (read gradually) is very often wishful.  The rate at which price declines and accelerations occur is very different from the rate at which economies move.  Economic slowdowns (or accelerations) do not come overnight, they are gradual processes–think in terms of turning around a 13 trillion dollar supertanker of an economy.