The correction continues as we are now reaching extreme oversold conditions; a snap back rally should be expected at any time. Markets started mixed, with the NASDAQ leading as a select group of go to names such as Apple, Google, Baidu, Facebook, Priceline and LinkedIn saw a rotation into them. However breadth was poor even in the morning and as the day wore on more and more stocks went negative. Eventually even the NASDAQ went red and markets finished down across the board. The small cap Russell 2000 was down nearly 1.1% which showed a better picture of what happened today as the larger capitalization indexes such as the S&P 500 and NASDAQ only fell 0.59% and 0.38% respectively. While not rare in normal times, this is the first 4 day losing streak of 2013. Economic news is very light this week with the big event coming Wednesday with the Federal Reserve meeting minutes released, so it was more of the same - higher interest rates on bonds are pressuring equities.
There are still some obvious downside targets in green below so either the market will try to go get them right away or a bounce (potentially a sharp one) will happen first as extreme short term oversold conditions now exist. Slicing through the 50 day moving average like it was not there is not a great sign for the S&P 500.
Due to Apple the NASDAQ remains much stronger and in a way deceiving as it is nowhere near its 50 day moving average - meanwhile plenty of other indexes such as the Dow Jones Industrial Average and Russell 2000 show weakness similar to the S&P 500.
Breadth was terrible again today with a reading near -2000 on the NYSE.
Here is the NYSE McClellan Oscillator - it is reaching those extreme readings at -100 or worse.
Here is the rate on the 10 year bond, you can see it is approaching 2.9%.
Here are some individual charts via Dan Zanger's newsletter Sunday night - many of these had positive days today.