NEW YORK (TheStreet) -- The stock market on Tuesday finally had a selloff that was more than a hiccup. All the negative divergences I have been mentioning in my articles finally showed their ugly head.
The DJIA lost 117.59 points to close at 16906.62 while the S&P 500 was lower by 13.94 at 1963.71. This was the 55th consecutive trading day the S&P has not had a 1% move in either direction. The Nasdaq was down 60.07, or 1.35%, and the Russell 2000 was down 14.59, or 1.23% for the day, to 1172.15.
The Russell 2000 is now down 2.97% in two trading days after failing to take out its March 2014 highs.
This downside move comes on the heels of volume that was above recent trends. The S&P 500 Trust Series ETF (SPY) volume closed at 107.6 million shares traded. That is the highest volume since 5/20/2014.
As I have mentioned on more than one occasion, the downside volume has been much higher on red days versus the green, up days. Take notice. It still matters.
The momentum technology stocks that propelled the indexes to new all-time highs just a few short days ago continued their move lower on above average volume. Facebook (FB), Netflix (NFLX), Twitter (TWTR) and Yandex (YNDX) were all substantially lower in Tuesday trading.
It should be noted that FB, TWTR and YNDX never took out their 2014 highs during this euphoric march to new all-time highs over the past few months.