Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Other than yesterday it hasn’t felt like much of a correction but since the Friday following QEInfinity Thursday the major markets have corrected by 3-4%. I see the S&P 500 down around 2.8%, NASDAQ 3.1% and Russell 2000 3.7%. Recall the latter being the leader for much of August and early September as “risk on” was embraced, so in the intermediate term bulls do not want to see it turning into a leader to the downside. For now it’s could simply be classified a reversion to the mean trade as it gained the most on the way up.
Markets remain under pressure this morning as housing numbers came in weaker than expected which is taking out one of the few true bull markets of the past few months. It remains difficult to see a sustained up move in this market without transports, semiconductors, or commodity stocks contributing anything. Some of these are reaching “washed out” status – also retail has been especially weak the past 5-6 sessions, which is a change versus much of the year.
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