After some promising action in banks the last couple days, it turned into a very discouraging day for stock market bulls. The best argument for some upside at this point was that as we digested budget news and new economic policies from the Obama administration, we'd have a bit more certainty and finally attract some buyers.
Unfortunately, the market just isn't convinced that we have the answers to our problems. In fact, we seem to just be realizing the consequences of things like national health care. The medical sector was demolished today on fears that margins would be squeezed under the proposed budget.
There has been no place to hide in this market. We are demolishing one sector at a time recently, and today it was the supposedly recession-proof health-related stocks that fell apart. We have had some bounces in groups like financials and oils, but nothing has lasted long enough to develop into leadership and drag up the rest of the market. There are just shorting opportunities rather than any real momentum.
It is a downright depressing market environment right now. Maybe that is a good contrary indicator.