The second quarter of 2018 is off to a very dreary start. The primary problem is that there simply isn't any leadership. We have lost the FAANG names and other speculative groups like biotechnology and China-related aren't doing anything. There is a little retail action in places but nothing is standing out.
Breadth is running about 2350 advancers to 4050 decliners and we only have a handful of stocks hitting new 12-month highs. There isn't even five stocks up more than 10% so far.
Unfortunately this isn't the sort of aggressive selling that suggests that a 'washout' is coming quickly. This is just systematic distribution and there are no indications of bottom fishing so far.
I haven't written this in awhile, but it seems suitable today. Bad markets don't wear you out, they scare you out. That is what we are seeing this morning. It isn't panic selling, it is just dreary liquidation.