Tuesday was a very ugly day in the US stock market: an all day slide with accelerating volume into the close
Sector rotation has gone decidedly defensive…
…and the NDX was weaker than the SPX.
On the positive side, all the major indexes are still above the 50 day, so there’s no reason to panic – yet. However, WTI closing a couple of ticks over $100, and a poor reception of Fed Chairman Bernanke’s Senate Banking Committee testimony, seemed to have rattled the stock market.
We’ve been looking for a correction in the 10% range for weeks now. Time will tell if this is it, but this is the type of action you often see at the start of a correction: we came off the top on heavy volume, regained a portion of that ground on lighter volume, and sold on heavier volume again. Be extra careful!