The markets are down big, again, and looking like they want to retest the lows from Monday (Dow: 23,794).  At one point, the Dow had plunged almost 700 points and is currently hovering around 24,365. All the major indices are down over 2%.  The selloff is broad and deep with decliners pounding advancers 2472/521 on the NYSE and 2406/496 on the Nasdaq.  There are 110 new stocks hitting 52 lows on the NYSE and 104 on the Nasdaq, compared to only 16 hitting 52-week highs on the NYSE and 32 on the Nasdaq. 

We are currently looking for support on the close of 24,140 to 24,345. On the upside, we would start aggressively buying around 24,912 - 25,000.

There is quite a bit of controversary about the Senate proposed bill. Some say its not enough, while others contend that lifting spending caps and adding to the deficit goes against Republican core beliefs.  The proposed increase in spending has pushed yields higher with the 10-year at a 2.85%, a level not seen since January 2014. 

On the economic front, initial jobless claims fell last week to its lowest level in nearly 45 years supported by strong labor market, bolstered by faster wage growth this year. The Department of Labor reported that initial claims decreased 9k to a seasonally adjusted 221,000 for the week ending on February 4th, below consensus of 232,000. 

I want to reiterate what I said yesterday, “hold tight and not be lured or spooked into forfeiting your ownership of great companies because of the fickleness of crowds."