Panic in cryptocurrencies is spreading to the stock market today and triggering broad selling. Breadth is around 6 to 1 negative, and new 12-month highs have collapsed to just 20 names. The selling is very correlated, and there aren't any safe havens, although some of the hardest hit speculative small-caps are not quite as bad as other names that have held up better.
The issue isn't news flow, inflation worries, or economic concerns. The market's big problem is that the giant wave of liquidity that supported this market over the past year has dried up. Mush of the speculative excess started to end in mid-February, but it rotated into cryptocurrencies and some of the conservative big-cap growth names. Those groups are now losing their liquidity support, and it has triggered some real panic in cryptocurrencies.
An early bounce attempt by the indices was quickly turned back, and we are now seeing some of the broadest selling pressure we have seen in a while. This is the sort of selling pressure that will typically lead to some sort of snapback, but it is very dangerous to try to anticipate exactly when that might occur.
I do like some of the relative performance I see in some of the small-caps I tend to favor, like Elys Game Technology (ELYS) and Enthusiast Gaming (EGLX) . I'm also looking at oil names for a bounce-back and am eyeing NOW, Inc (DNOW) .
This is a mess of a market right now, and the indices are making new intraday lows, as I write. At least the bear market action is no longer being covered up by the indices.