A Stock Market Selloff With Some Volume and Power Behind It

NEW YORK (TheStreet) -- The stock indexes finally had a decent selloff on Tuesday and it came on the heels of an intraday turn. That is exactly the type of day that I prefer.

The indexes were up big on Tuesday morning until the plug was pulled. The Fear/Greed Index from CNN Money was at 93, extreme greed, before closing at 83. The CBOE Market Volatility Index (VIX.X) had a 10 handle before closing up 1.15 at 12.13. It appears that some fear has entered the market for a change.

The DJIA closed down 119.13 points at 16818.13 while the S&P 500 was down 12.63 to close at 1949.98. The Nasdaq was lower by 18.32 at 4350.36 and the Russell 2000 was down 11.71 at 1173.24.

The question now becomes, do we see more follow through to the downside on Wednesday? The revised Growth Domestic Product number comes out and I expect to see a downward revision to the number. That is bearish.

I once again will remind readers that the macro themes for 2014 are inflation accelerating and U.S. growth slowing. This view is supported by the following facts. The S&P Goldman Sachs Crude Oil Trust Index ETN (OIL) is up 11.2% for the year to date and the Select Sector Energy ETF (XLE)is up 12% YTD. The SPDR Gold Trust (GLD) is up 9% YTD.

The "Growth Slowing" sectors, Select Sector Utilities ETF (XLU) is up 14.4% YTD and the Barclays 7-10 Year Treasury Bond Fund (IEF) is up 4% YTD. The Select Sector Consumer Discretionary ETF (XLY) is down 1.2% YTD.

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