Forget the summer of love. Fear and panic are in the air, and investors are looking for some handholding.

Each sector in the S&P 500 is lower, with Energy taking the brunt of selling, and Financials continue to move sharply lower.   I think there are seriously oversold stocks in the oil patch,  but I am not confident about value in Financials just yet.  Materials and industrials are taking it on the chin as well.

Bright Spots 

Technology looks compelling and unprofitable tech names not in the S&P are moving higher. 

The so-called stay at home names also enjoying nice bounces today.  It’s a tricky area with most of these ideas being better for trading; although, I do like long term potential for DocuSign (DOCU) and Chewy (CHWY). 

Fear & Panic

There are lots of places to judge investor angst, including the CBOE S&P 500 Volatility Index (VIX), which is up more than 30% and above 25.  The last time the index spiked to this point was May 12 when it closed at 27.59 after tickling 28.38. 

This kind of spike is often a buy signal.  In fact, on May 12, all the major indices were lower and then moved much higher:

• S&P 500 closed at 4,063
• NASDAQ closed 13,031

The first bounce attempt is fading but gave us markers:

• S&P 500 4,239
• NASDAQ 14,178

I’m spying names in the Russel 2000, which is clearly oversold.