Monday, December 15, 2014

Deteriorating breath turning into broad selling

The market has been selling broadly. All major indexes are down. This includes small caps that have been weak all year but also large caps, tech, and biotech that have been leading all year. The major indexes are down:




The selling is global with all indexes down.


VIX remains elevated but has not spiked further. The volume is elevated but only modestly so. In all, the selling has been orderly without a sign of panic or capitulation. Given uniformity of the action, the stock market rout will probably continue. The question is whether the selling remains contained or if this turns into a bigger rout.

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