It was another dismal day with early strength being sold and breadth shifting from nicely positive to 2,900-4,370 negative by the close. New 12-month highs expanded to over 400 and a nascent bounce in oil (USO) couldn't find much traction.
The selling felt more forced today. Obviously this sort of action triggers margin calls for the brave souls that are using margin but there is also talk about forced liquidations by hedge funds in oil and gas, biotechnology and other areas.
This is the worst selling action we have experienced since the 2007-2008 meltdown. That was tremendously different as the foundation of the financial system was on shaky footing but we haven't seen this sort of intensive selling in a long time.
We are experiencing extreme enough selling pressure now that a good sized snap-back rally could occur at any time. A news item like a less hawkish Fed or some progress on trade could spark a very sharp upside move but at the moment the selling is feeding on itself and the fundamentals of individual stocks are irrelevant.
While this is painful action if you are holding long positions, I can promise you that some exceptional opportunities are developing. Just stay patient and don't pay too much attention to those that are predicting the end of the world.
Have a good evening. I'll see you tomorrow.