After two days with strong opens and weak finishes many market players were thinking that a flat open might be a good setup for some upside. Many stocks are oversold, sentiment is increasingly bearish and there wasn't any major news to trigger the algorithms.
Unfortunately it wasn't enough to bring in some buyers. Groups like banks, biotechnology and small caps saw more pressure and mild bounces in oil; Apple (AAPL) and a few technology names were unable to create any optimism.
To put it in simple terms, it is bear market action. Even though there really isn't any particular reason for the selling to continue there are many folks that want to exit. They don't much care that they are selling after a substantial drop. They are not price sensitive at this point. They just want to escape the stress of this poor action.
What was particularly disappointing today was that the individual stock picking I keep yammering about not only failed to improve but actually looks even worse as some support levels were breached. I would love to embrace a rally into the end of the year but until there is some better action in individual stocks there isn't much to do but wait.
Have a good evening. I'll see you tomorrow.