NEW YORK (TheStreet) -- After three straight up days Friday saw a selloff that was on increased downside volume.
The S&P 500 Trust Series ETF (SPY) volume came in at 76 million shares. That was much higher than the 3 proceeding up days. Where have you heard this before? On up days the volume is decelerating and on down days the volume is accelerating. Just not the way a bull market is supposed to be acting.
The DJIA was down 123.23 points to close at 16960 and the S&P 500 was down 9.64 at 1978.34. The Nasdaq was lower by 22.54 to close at 4449.56 while the Russell 2000 was down 1% to finish at 1144.72. The Russell 200 Index is now down 2% for the year to date. Now that is a sure sign of a stock market that is not quite in bull mode.
Where the stock market goes from here is anyone's guess. The stock market is not the economy in 2014. I have a feeling geopolitical events are now starting to infiltrate the stock market.
In the next crisis that is on the horizon, you will be told you cannot have your money when you ask for it. The term "macro prudential" means asset freeze or bail-in. The new money market regulations that went into effect this week allow for suspension of redemptions. The Federal Reserve is coming around to the view that a collapse is coming and regulators are exhibiting signs they expect another collapse.