Internals

The rate of selling today is, so far, less intense than the last few days. I will feel a touch more encouraged if the SPX can hold in the mid 1150's or so. The trend this week has been to sell down early in the day and then sell more aggressively at the end of the day. We'll have to see.

Unless I have missed it no one is talking about options expiration. We'll see if that comes to play or not.

The Nasdaq is clearly in bad bad shape. I noted the other day it sliced through its 200 DMA badly and has not found any support. I have been writing for ages about having been underweight tech for clients all this time. Underweight though means I own a couple of big cap names and one mid cap. They have all participated in the selloff but I'm thankful I don't own more:-)

The logic behind underweight tech has been quite obvious to me and written about here time and again. There has been no visibility for the sector to do well in many quarters, visibility in terms of the businesses doing well. Poor business conditions reduces, but does not eliminate, the likelihood that the stocks can do well.