that's a fundamental change in fed policy. >> david zervos, thank you for joining us on this critical day where we're seeing the markets plummet. two minutes to go in the trading day. mike, what are you seeing in the internals? can't be good. >> very, very lopsided to the downside look at that, it's well more than 10-1 declining to advancing volumes. you finally got 90% downside day. we can argue about whether that means there's been a little bit of a decent flush and a shakeout the last couple of years, the equal-weighted s&p against the nasdaq 100 and s&p has held up better so, in other words, the nasdaq 100 has caught down to the s&p and it doesn't mean you've escaped any pain but it shows you it's mostly the biggest stocks hurting volatility index is at 31, well below the highs of a few days ago. people seem very hedged up so it's not reacting as much to this move. the s&p is where it was just before noon yesterday. >> as we head into the close, take a look at the market. we are off the lows of the session but still down more than 1,000 points on the dow, about 1100 points. we wer

. >> this is the silver linings playbook thank you for joining us with it >> david zervos of jefferies quick programming note, kansas city fed president esther george will be on "squawk box" tomorrow with more on how the fed is handling inflation at 8:30 a.m. eastern time with the dow now down 1100 points let's get to michael san ttoli this note. mike, what are you watching? >> watching it all and getting disorderly this generally has been relatively orderly this entire decline. it's mostly been about attacking high valuations and reconciling them with a higher inflation and higher yield and financial tightening-type environment. we are some distance along that path i think what happens today is the shots and really the severity of the market reactions to walmart and target and having that blast and expand into consumer staples shows you things are getting messier, maybe that's good longer term and it gets more indiscriminate. last thursday and friday the rally off that low, i thought it was good enough to actually support a further bounce a lot of people seem to agree with that, but g