One would think that for equities a temporary hold on Federal Reserve rate hikes would have produced at least a neutral if not positive resonance.

Rather, equities markets chose to interpret the FOMC’s maintaining of the status quo as a statement that sketches the world economy as weakening, if not sliding toward recession. On that note, it is China that is generating those fears.

The biggest news of the day is the soaring price of gold.

More impressive is that, while some of the gain was generated by a weaker U.S. dollar, most of the advance came via regular trading. That is to say that a lot of people wanted to buy gold.

After a smoother ride late last Week, turbulence returned with a vengeance to start the week. Crude oil, the usual agent of anarchy headed the instability mob. West Texas Intermediate is down over 6.00% in later afternoon trading while Brent North Sea is nearing that size loss. Both top-shelf oils are again staring at sub-$30 per barrel pricing.

“Just when you thought it was safe to go back in the water…” That was the famous advertising slogan for the classic sea behemoth mega hit, Jaws.

Slightly modified, we have to put that in the form of a question today. Is it safe to jump back into the markets?

At 3PM in New York, West Texas Intermediate is up 5% and Brent North Sea is over the moon, rallying more than 6%.

The thudding crud you hear falling to earth is crude oil. West Texas Intermediate has demolished the $27 per barrel barrier and looks set to hurtle down further. Brent North Sea is not far behind.

WTI is down 6.7% on the day, its lowest settlement since 2003. Brent, while down, is up off its earlier lows.

What are the tealeaves saying fundamentally? The huge number of signals, cross signals, coded messages, encrypted ideas and so forth make it very difficult to come to a clear understanding.

The award for best performance of a leading stock index was given to the Nikkei. It was down today “only” 0.54%. Worst on the day was Shanghai, which was off 3.5%.

The NASDAQ did not do much better than Shanghai, off around 3.00%. All other exchanges lined up somewhere in between those extremes. The Dow is looking to close off over 400 points.

The current relationship between the price of crude oil and pricing levels of world equities is more than confusing. It is particularly intense when it comes to American equities, which have many huge energy companies as components of their special index.

If you feel the skin on your face rippling backward, that’s the force of 2 or maybe 3Gs. But you’re feeling something entirely different in the economy right now. And it’s a bit scary.

The very intense, 7G ride in the markets is at hand.

The Dow, the S&P 500, and NASDAQ in particular, are plummeting. Call it approximately a drop of 2, 2-1/2 and 3 percent respectively.