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) volume was a huge 143.3 million shares traded.
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.