It was a rough day for the market again, but you wouldn't know it from the Dow Jones, which managed to close with a gain of about 27 points after a dip of 200 points during the day.
But the Dow covered up some very poor action again. Breadth was 2,200 to 5,700 negative, and the Nasdaq was clipped for a loss of 1.85%. The FATMAAN names were all red, and it was a world of pain in many of the technology growth names. Just take a look at the ARK Innovation fund (ARKK) , which was hit for another 3% loss today.
The good news is that some of the folks who have been focused on the misleading indexes finally seem to have figured out that there is some very poor action under the surface. There was more bearish in media than there has been in a while, but they still don't seem to fully appreciate the fact that much of the market has been in a bear market for months.
Unfortunately, the disparity between the Dow and small caps and growth stocks is close to record levels, and it is difficult to even guess how that will eventually rectify itself.
Much of the weakness today was blamed on Janet Yellen, who made some comments about how rates would have to eventually increase if the economy was too strong. She backed off late in the day, which helped the indexes bounce, but just a hint of less dovishness was all it took for the big caps to drop.
The corrective action in big caps is still quite shallow, and it would be healthier for the entire market if it went deeper and longer, but there doesn't seem to be anything yet that is slowing down this crazy rotational action that has given us a bear market and a bull market at the same time.
Have a good evening. I'll see you tomorrow.