Earlier low gives way

A quiet day, or even a small loss, would have been a positive sign for the equity bulls as markets rebounded late last week.

Alas, not even a New York blizzard could keep the bulls away and the S&P 500 is down 22 points to 1885.

So far the yen crosses haven't joined in. AUD/JPY is right in the middle of its US range of 82.42 to 85.92 (spot at 82.60).

There's a comment from Jim Bianco over at ZeroHedge and it's a good one. He says that markets "are telling us there is an issue."

"Every time the financial markets get volatile and messy like this it deserves attention because the markets are trying to tell us that there is a severe issue out there. It's been coming from all over the place: We got a collapse in commodity prices and we got financial markets across the globe selling off, including in the United States. So I'm going to pay a lot of attention to it," he writes.

He says the market is worried about a global slowdown, especially in manufacturing. He also blames the Fed in China.

They're the usual suspects. I think the commodity collapse, especially the supply side of the equation is a much bigger problem than 99% of analysts realize but at some point, why is less important than what's happening. The signal from markets is the story.

Bianco says that at a minimum, stocks will revisit Wednesday's lows.