The market opened on a high note due to a European interest rate cut, and pushed up against the October 30th high and then promptly fell, hard, to close at the low of the day, down 1.32%. The market supposedly fell because a GDP report came in better than expected, that would be good news except to the stock market which has an unusual way of thinking about things. A good economy means that tapering would happen sooner rather than later, and so that is bad news for the market. All of this gets back to the artificial inflating of investment assets due to the Fed’s printing press and as we have written before, the sooner we can end this the better for everyone. We believe a slow, steady taper over a 12-month period would work just fine and had it started back in September when everyone expected it, it would have prevented any big market hits. But because the Fed did not begin to taper, we will now have to deal with days like today.

The market has been pushing up against highs of late but if you look at some of the high-flyers many have been starting to show broken chart patterns in the last couple of weeks.

Take a look at TSLA, after hitting $194 on September 30th, it has shown a string of lower highs and lower lows.

Other high flyers that we follow have also been hit of late and also today. FWM (-21.64%), GMCR (down 34% since August), NDLS (-9.81%), NUS (-7.15%), PCLN (-3.32% and down more in after hours) and SCTY (-16.70%).

Today the market opened above the high from yesterday and finished lower than the low of the last 9 days. Volume was the highest since October 16. Not really a good technical signal. This market has continuously shrugged off days like this, time will tell if this is the start of something bigger.