The day-to-day market is reflecting this pattern:
1. Algorithms have learned key words and respond to the news or tweet language.
2. Human traders pile on, perhaps taking the other side from the computers which are already cashing out.
3. The punditry, charged with imposing meaning on chaos, exaggerates the effect of minor news.
4. Mainstream media picks up these “reasons” as the story of the day, even if markets move modestly.
5. Investors who are observing casually become unduly frightened by the scary news and volatility.