We outlined for you this morning to watch for a ‘sell the news” day. This was not just selling. Leading growth/tech/internet/semis and all that stuff was mauled. To be clear, anything is possible but this does not look like ordinary selling or an ordinary pullback in these areas. To our eyes, this selling looks consequential for these areas. Due to the fact many have had long runs, we would be doubly careful.

On top of that, a frothed up open in the DOW/S&P was sold and closed at the lows with the S&P down on the day. Tax reform beneficiaries were still up nicely but also came in a decent amount of the way. Our “changing of the guard” theme remains in force and for the growth/tech/internet/semis, we would be more than cautious.