Another swift reversal to the downside after a strong start to the session.  There are several issues at play here, and in my opinion, this is how they rank:

1. Selling rallies is the daily script until there is a session when a big rally morphs into a big selloff, that ends with a strong rally into the close, that finishes the session at the high of the day.

2.  Maxine Waters takes over as chair of House Financial Services Committee in January and just throws down the gauntlet:

   "Make no mistake, come January, in this committee the days of this committee weakening regulations and putting our economy once again at risk of another financial crisis will come to an end," Waters said during a hearing with Randal Quarles, the Fed's vice chair of banking supervision.

3. Apple and other high flyers continue to struggle as more firms jump off the bandwagon.

• Guggenheim sees revenues of $273 billion and earnings per share of $12.97 and no pricing power in the iPhone, which has risen $220 or 40% in the past ten years.  Target $245
• Goldman Sachs lowers target to $209 from $222
• JP Morgan target lowered to $266 from $270

There is something cathartic about rearranging leadership and shaking out market excesses and weaker hands.  The problem is that new leadership has yet to emerge.

Let’s not force the issue this afternoon.