The S&P 500 is down six of the last seven sessions, but the loss today is the biggest so far at around 2.4%, as I write. It is a sea of red on the screens with breadth around 9 to 1 negative and almost 2000 new 12-month lows. The action is so poor that it is feeling a little a crash.
The good news is that we are starting to see some very extreme action and negative sentiment. I have been writing about the poor action under the surface of this market for many months, but now everyone can see what I've been discussing.
The indexes still aren't in official bear market territory, but the Russell 2000 (IWM) has crossed the 20% drop threshold, and there are 1000's of stocks that have been more than cut in half already. The expansion in new lows to almost 2000 is staggering.
I can go on at great length about the ugliness of this action, but the only real issue that matters is whether we are moving to the point where we see some sort of rebound. The selling and the sentiment are certainly at a point that would support a snap-back, but the problem continues to be the annoying indexes that don't reflect the worst of it.
I'm champing at the bit to put more capital to work, but I'm cultivating patience. I want to buy strength, not weakness, and so far, we don't have any.