The mood was already negative on Monday, as procrastinating taxpayers filed their extension and were stuck with sizable tax bills after last year's market action. But the poor market moves made it even worse. It was one of these days in which the indexes failed to reflect how poor the situation really was.
Breadth was around 2,300 gainers to 5,900 decliners, but what was even worse was that new 12-month lows expanded to around 850 names. Groups like biotechnology, cannabis, growth, and small caps went bidless. There were only about 15 names on my scan of stocks up more than 10%, which left the day traders with little to do.
There is no big mystery about what is driving this poor action. Bonds struggled as interest rates rose again and inflation worries continued to soar. That was reflected in some energy and commodity names, but the buying that did take place was more defensive than anything else.
The only positive that I see is that it is miserable action, and many investors are predicting that it isn't going to end for quite a while. Ultimately these are the conditions that produce some strong countertrend action, but so far, we are seeing no signs of it yet in the price action.
Have a good evening. I'll see you tomorrow.