Market Outlook: Current Scenario Is Similar To The 'Flash Crash'

Today US activity will be very light given the Columbus Day holiday. As DB summarizes, we have a relatively quiet day for data watchers today but the calendar will pick up tomorrow and beyond with a big focus on inflation numbers amongst other things. Indeed tomorrow will see the release of Germany’s ZEW survey alongside CPI prints from the UK, France and Spain. Wednesday’s data highlights will include the US retail sales for September, the Fed’s Beige Book, CPI readings from China and Germany, US PPI, and the NY Fed Empire State survey.

By Price Headley: Part of the market's current stagnation can be chalked up to the time of year…the coming summer doldrums. Another part of it, however, stems from the fact that traders are simply unsure of what to think here. The good news is, the floors and ceilings are pretty clear. The challenge is, there's no particular guarantee we'll move past either this week.We'll dissect the details in a moment. Let's first paint the bigger economic picture. Economic Calendar

Last week saw a crazy full schedule of economic data accompanied by market volatility. This week has much quieter calendar. "The first important data release does not arrive until Thursday, when we get May retail sales," said Deutsche Bank's Joe LaVorgna.

With the snoozer of an FOMC meeting in the rearview mirror, as well as Scotland's predetermined independence referndum, last week's key events: the BABA IPO and the iPhone 6 release, are now history, which means the near-term catalysts are gone and the coming week will be far more relaxed, if hardly boring. Here is what to expect.

This week, markets are likely to focus on US ISM Nonmanufacturing, services and composite PMIs in the Euro area (expect increases), ECB’s Monetary Policy Decision (expect no change in policy until further ahead), and Congressional testimony by Fed’s Yellen.

All U.S. markets will be closed on Monday to observe Martin Luther King Jr. Day. The rest of the week will be extremely light in terms of economic data. But this will also give folks time to think about their investments.

A quiet day unfolding with just Chicago Fed permadove on the wires today at 1pm, following some early pre-Japan market fireworks in the USDJPY and the silver complex, where a cascade of USDJPY margin calls, sent silver to its lowest in years as someone got carted out feet first following a forced liquidation. This however did not stop the Friday ramp higher in the USDJPY from sending the Nikkei225, in a delayed response, to a level surpassing the Dow Jones Industrial Average for the first time in years.

By Price Headley: Not only was it the first winning week in the last five, it was the biggest winning week in the last eight. Oh, it still came nowhere close to undoing the damage/carnage seen over the prior four weeks – a 16.5% drubbing – but it's at least a sign that not all hope is lost.