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Selloff masks real concern for stocks

The sickest part of stock market

Stocks sold off on concerns about the global economy, but the real worry for the market is the second-quarter earnings season.

The selloff was sparked by worries about insolvency at a Portugese bank and global growth concerns after a stream of negative data. This comes after the Federal Reserve announced an end date of October for its bond buying program, formalizing what markets had expected.

The Dow opened sharply lower, with an 180 point or 1 percent decline, but recovered more than half its losses to close down 70 at 16,915. That was the biggest reversal for the Dow since June, 2013. The S&P 500 was off 8 at 1964, and the Nasdaq finished 22 lower at 4396. The Russell 2000 was the worst performer, down 1 percent to 1161.

"I don't think people are too enthused to commit new money up here. I also don't think they want to sell," said Jones Trading chief market strategist Michael O'Rourke. "We've gone up 10 percent since mid-April and today was the biggest pullback we had in the last couple of months and we can't even stay down 1 percent. There definitely was some dip buying. It's not like we hit any point where there was panic selling."