September did prove to be a difficult month just like it has historically proven; perhaps “difficult” is too light a word as it was pretty brutal at times. 

Sharp selling pressure in technology yesterday is carrying over into today. I think what we’re seeing here is reminiscent in earlier this year when the momentum growth categories went into an aggressive rotational consolidation. 

“30 days half September” which means there are only four trading days remaining in September and the 3rd quarter of 2021. The market is in a bit of a limbo stage. 

The trading actions so far this week in the stock market have had similar technical earmarks to other declines in this bull market cycle. 

I would categorize yesterday’s action as a “hangover Monday” in which traders are reacting to news from over the weekend, especially the news out of China that acted as a catalyst for the decline. 

The VIX breaking out this morning above the 25 level. Friday may have been a clue of what was to come this morning… 

I would characterize the stock market’s performance this week as having a moderately negative bias; rallies have been cut short by selling but the selloffs have been met with some buying. 

Calls continue for a 10–20% market decline. I believe that wouldn’t be so likely without the occurrence of some kind of event that broadsides the market. 

September can be a challenging month — historically the most challenging — for stocks. September’s volatility can bring about a situation where the major market indices mask the underlying market. 

Yesterday’s session was a study in contrast between value and growth; that was reflected in part in the fear index which rallied sharply.