The bears are finally gaining a little traction as the combination of negative technical action and negative headlines create selling pressure. The first bounce out of the gate was sold aggressively and the breaching of the opening low triggered sell stops.
The main catalyst so far were some negative comments about the issues involved in China trade from Trade Rep Lighthizer, who commented that enforcement was a major issue. On top of that we have the Michael Cohen testimony and the Democrat-controlled hearing with Jerome Powell.
What the bulls are missing and what is allowing the selling to accelerate is the potential of immediate positive news on China or more Fed dovishness. As I discussed in my opening post, those have been the main drivers in this market and both are losing some steam.
On a micro level, many of the individual stocks I've highlighted recently that have made big moves are in position for some rest. Names like Bloom Energy (BE) and Pyxus (PYX) have become technically extended and need to consolidate.
Its been a long time since the bears have generated any strong downside momentum but they have the edge today. We'll see what they can do with it.