The market has been struggling with corrective action for a couple of weeks now. There has been a series of intraday reverses and weak closes recently, which have produced a series of lower lows. The selling has not been too aggressive, but it picked up traction today.
Breadth was three-to-one negative, and the number of new 12-month lows approached the number of new 12-month highs, but what was most significant was that the selling was more correlated, and bids disappeared in many places. The bottom fishers that have been providing support disappeared, and the pockets of speculative action dried up as well.
So far, the corrective action has been almost too mild to be effective. A decent correction has to deliver some pain, and we had a taste of that today as there were few safe havens.
As I've written often, bad markets don't scare you out; they wear you out. It is when the corrective action drags out for a while that it causes some despair and give-ups, and that is what ultimately leads to a tradable low. We have a ways to go before we hit that point, but the corrective process is underway, and it is picking up steam.
Have a good evening. I'll see you tomorrow.