"If the stock market rally is going to continue the next couple of months, it will have to do so against an aggressively worsening profit backdrop."
The market has lost all sponsorship, held up merely by the Skynet short crushing algorithm which works until it doesn't...
Short-covering...
As usual the main indices hide the carnage under the surface. The Nasdaq ("growth") and Financials were the last major sectors to peak and now they are lagging badly. When 3x overvalued "defensive" stocks plummet straight line out of their rising wedge, there will be no sector left to halt the collapse...
The Nasdaq %of stocks above 200 day moving average
Nasdaq 100 (large cap tech) %200dma:
Financials
Banks w/Fed Funds rate
JP Morgan
This was the "bag holding" rally
Skynet short-crushing algorithm: take volume and volatility down to zero at the top, see who gets a sex change...