Last night stock index futures reached their respective 5% limit down levels. After this morning's 8:30 AM CT opening bell, trading limits were extended, and markets continued to trade lower, eventually triggering the 7% circuit breaker level where trading was halted for 15 minutes. The next level down is 13%, where trading could possibly be halted for another 15 minutes, and then the 20% level, where trading will permanently halt for the remainder of the session.
Since the inception of the circuit breakers after the 1987 stock market crash, when the Dow Jones Industrial Average fell more than 22% in one day, the 13% breaker level has never been triggered. There is a threat of this happening today. It’s easy to get swept up in the news, so try to remain calm. We’ve been here before.
Stay patient, sit on your hands, observe from the sidelines. Understand how the markets are digesting this information.
Trade with extreme caution: