NEW YORK (TheStreet) -- Well, this is what it looks like when the hedge funds decide to sell in unison.

The DJIA closed down 161.39 points to 16976.81 on Thursday after closing at an all-time high on Wednesday. The S&P 500 was down 23.45 points to close at 1958.12. This is the first time that the S&P has had a 1% or greater move, either up or down, in 62 consecutive trading days. That is a long time. The Nasdaq was down 62.52 points to 4363.45 and the Russell 2000 was down 17.95 to close at 1133.60. It should be noted the Russell 2000 index is now down 3% for the year to date

This downside move comes on the heels of a very negative day in the geopolitical arena.

Even more important to traders and investors is the S&P 500 Trust Series ETF (SPY) - Get Report volume was a huge 143.3 million shares traded.

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I have been writing and warning many times of what could happen if the hedge funds started to sell in unison. It is not a pretty picture if you are a perma-bull. The selling starts slow and the risk then happens very fast to the downside.

For the first time in many months, my S&P Daily Trading Range Buy signal was breached to the downside intraday. At the close, however, that level held. The buy trade level is 1957 and the S&P closed at 1958.12. We shall see what happens on Friday but that is a positive or short-term bullish sign.

There was also a sign of fear in the air today. The CBOE Market Volatility IndexI:VIX was up a whopping 32.18%. It's been a long time since that has occurred.

U.S. housing starts unexpectedly fell 9.3% to a nine-month low in June. That is another sign of growth slowing.

My macro theme that has been in place for 2014 still holds true. The U.S. economy is in a growth slowing, inflation accelerating mode, regardless of what the Federal Reserve tells you.

The S&P Goldman Sachs Crude Oil Trust ETN (OIL) - Get Report was up 1.76% today and the SPDR Gold Trust (GLD) - Get Report was up 1.70%. These are both inflation accelerating indicators.

The oil stocks, however, were big losers on the day. One day after selling my Southwestern Energy (SWN) - Get Report and Penn West Petroleum (PWE) stocks for nice profits, my Ultra Petroleum Corp (UPL) was hit hard, down 6.48%. As per my process, I added more long shares at the close of trading on an extraordinarily oversold condition.

Friday will be my last Free Chat Friday for a while. It is my one-year anniversary of going live for the world to see and we have had a success rate of over 94% with over 400 trades. Please join us.

At the time of publication the author was long OIL and UPL..

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.