Early Update – Potential Capitulation Event

10:14 a.m. ET U.S. PMI’s came out after the open. Manufacturing PMI dropped from 57.7 to 55.0 (worse than the 56.8 expected) while Services collapsed from 57.6 to 50.9 (much worse than the 55.0 expected) to an 18 month low (and this is the economic backdrop the Fed is tightening into. SP-500 -2.5%, Dow -2.5%,…