After the selling pressures from the morning abated, the indices spent the afternoon in a relatively tight trading range near the lows of the session. Financials, consumer discretionary and tech led the market lower, while the hottest groups saw mixed action. Solars and chips were weak but oils were strong on a fresh high for crude. Meanwhile, gold continued to improve. The GLD is back above its 50 day moving average, and I suspect that there may be more upside if it can hold its recent gains.
Overall, it was a poor day for the market, but given how well it acted over the past several weeks, a little downside here is to be expected. The question now is if it starts to gain momentum. For those that believe, there are plenty of charts that would look a whole lot better after a bit of consolidation, but we need to see how the dip buyers behave first.