Sure looks that way to me. The only significant groups that have held up in this market are Ag, coal and gold. Ag got hit yesterday, coal is rolling over, and gold will probably be sold just because it is up so high.
The cracks in the economy have now become fissures, making furrows on even the most botoxed policymakers forehead. Consumption by a certain percentage of the population has completely stopped, as they've decided to keep their homes. The housing industry has been in a recession for over two years; autos 18 months, and the financials six months. Now restaurants have joined them.
So now the Fed, in their august wisdom, can recognize what the market has the last six months. Stock prices are now discounting the recession we are now in, and you can just forget about government statistics of if we are or not.
The Fed was too slow in cutting rates, and they are still just yakking instead of whacking. The two year is now at 2.46%, with Fed funds at 4.25%. But now, stocks are so cheap you can just about buy anything across the board. The Ultra QQQ Proshares (QLD) traded at 77 last night, and can be picked up here at 78.70, and the Russell 2000 ETF (IWM 69) can be bought here.
And then just buy across the board. This should be the lows.