Broad selling action continues which isn't that surprising but what I find most interesting about the action is the degree to which the indices fails to reflect the carnage that has occurred in individual stocks.
The folks in the business media constantly talk about how the indices are hitting their lowest point in a number of months. The Russell 2000 ETF (IWM) , which is the worst of the bunch, just hit its lowest point in a year. However, when I look through the charts of individual stocks that are hitting multi-year lows, the indices look pretty healthy by comparison.
This isn't a new phenomenon. Since the market bottom back in 2009 almost all of the corrective action we have seen has occurred on a rotational basis. There have been a few times when the selling was broad and impacted all the indices - like in January 2016 - but typically the corrections have occurred one group or sector at a time.
This is important because the likelihood is that when a market recovery does take place it will occur on a rotational basis as well. Currently it looks like Apple (AAPL) and the banks are still undergoing intensive selling but other groups, that have been correcting much more aggressively, are starting to look washed out.
What I'm looking for are some sigs of the old adage about it being a market of stocks rather than a stock market. There are hundreds of stocks that have been unfairly sold in the past month and many of them will come back aggressively. Groups like cloud computing, biotechnology and oil will bounce big sooner or later as they have already been in a bear market for a while. But, timing is the name of the game.
If you are simply looking at the indices it is much harder to be very optimistic about the potential for a near term bottom. However, if you are looking at individual stocks you have to be wondering when the 'value' buyers will go to work. Apparently it isn't today.