Market Gets a Major Shot Across the Bow

The minutes from the Fed's January meeting showed many officials voiced concern last month over potential costs of more asset purchases, suggesting that the program, known as QE, may slow before the pickup in hiring it was intended to deliver. This news was the primary catalyst for today's sell off. The market still seems dependent on a steady flow of money from the Federal Reserve.

Big volume selling was extremely strong across most markets. This generated a sell signal in our market direction model. It's been a great run, but it was getting a little long in the tooth.

Market Snapshot

Market Gave Up Ground Today

Market Direction Model

Market Under Pressure

Chart View

Nasdaq Composite Index

Bearish Move

The late day sell-off was rather unexpected today. But it is what it is. The depth and breadth of the move is a real reason for concern. We had multiple blips of bad news as the day wore on. Furthermore, sequestration is now going to begin dominating the news. I will move to cash in a big way tomorrow. 

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.