Only four sectors finished higher, and most themes were deeply in the red yesterday. Only 27% of S&P 500 (SPX) components finished in the plus column, and only 17% for the S&P 400.

Internal Bleeding

The market stumbled out of the gate, and while there wasn’t any panic, internals kept getting decimated:

• Decliners outpaced advancers on the New York Stock Exchange (NYSE) at almost a 4:1 ratio
• New lows towered over new highs
• Down volume swamped up volume (even on the NASDAQ)

Still Fearful

The Fear & Greed Index has raced back into “neutral” after knocking on the door of “extreme fear” a week ago. It might not be “fear,” but there is serious anxiety out there. Investors are looking for a clean break and are willing to chase at this stage.

There is Demand, After All!

Primary dealers took a record-low 2.5% of yesterday's $39.0 billion bond auction and served as a relief valve for yields, which were off to the races at the start of trading. We could be at a short-term top/pause, but I’m still in the camp that this is year three in the secular bond bear market.

Some Calm