Well, that wasn’t funny. How dare the market go down? And go down nastily! Let’s back up!
We have reported to you that about 40% of the market was already in bearish phases of differing ugliness. Because of that, we reported to you to avoid retail, biotech, commodities, energy, oil&gas, autos, transports and financials. Financials had not been hit hard but were under-performing under resistance and the 50 day average. Today, the bad got badder and the good came in hard as the complacency that has pervaded the air was unwound and quickly. The big leaders are hit harder because they get over-owned late in the move.
We report to you the outcome of the day. Things worsened. On top of all the troubled areas, the transports and the financials have a chance here to complete major tops put in place for a bunch of months. This would be very important. We now have a skeptical eye towards even more names and areas. Keep in mind, we have not had a decent correction since before the election. It has been overdue. Stay tuned. Things are getting interesting…and not in a good way.