It was one of those days when the indices looked bad but the trading felt much worse. Individual stocks continued to be pummeled and there were certain areas like oil (USO) and oil services (OIH) that look like crashes. Oil services are hitting their lowest point in 14 years and oil is setting records for consecutive down days.
Oil is one of the more dire areas of the market but there were plenty of other examples such as biotechnology and even the FAANG names which acted poorly although overall breadth was just slightly negative.
Probably the best way to see how much weakness there is in the overall market is to look at the number of stocks hitting new 12-month lows. There were around 360 compared to just around 50 new highs. That level of new lows is improved from the worst levels in October but it still illustrates how willing market players are to keep dumping stocks into weakness.
One of the more disappointing aspects of the action today was that conditions were pretty good for a snap back from the recent pressure. The negativity is reaching very high levels and there are plenty of reasons for the contrarians to start thinking that things are so bad that they can't get much worse. It is extremely hard to time the market based on that approach but negativity is definitely ramping up fast.
The biggest danger in a market like this is to be to quick to try to catch a turn. It is far better to be late than early when trying to buy in a downtrend.
Have a good evening. I'll see you tomorrow.