If you were beginning to think the stock market only went up, think again.
Both the Dow and S&P shrugged off bullish jobs data and drifted lower on Thursday after a surprise decline in existing home sales led to speculation that the economic recovery may be bumpy, at best.
The losses drove the benchmark S&P 500 , which has rallied nearly 60 percent in six months from 12-year lows, to its worst two-day drop in three weeks as investors pummeled stocks across the board.
All 10 S&P 500 sectors fell, with materials, energy, financials and industrials faring the worst.
Has the market just showed its hand? Is the current turn lower a watershed moment for the market?
Instant Insights with the Fast Money traders
There was no positive bounce on Thursday which isn’t good after a day like Wednesday when everything reversed, lower, says Guy Adami. I think the market just showed its hand and in 6-weeks we’ll look back at this week as the watershed moment. I expect next month at this time the S&P will be much lower
I think the correction is a healthy thing, counters Joe Terranova. By the end of the year I expect the market to revisit its highs.
Personally, I didn’t think the housing numbers were terrible, but it seems like sellers wanted to push the market lower, muses Tim Seymour. I'm watching 1035 which is the 20-day. If we break that I'll be worried.
And from Fast Money's Halftime Report...
Typically, they don’t ring bells at the top of a market, muses Jon Najarian, but there are certainly signs that investors are getting nervous. The Vix pushed up toward 25 it’s highest level in a while. It’s possible investors are looking to hedge if not get off the train all together.
The price action over the last two days feels different to me, adds Christopher Zook of CAZ. It seems like the sellers are getting more aggressive.
On Monday there was a key reversal in the S&P, explains Greg Troccoli of Opalesque. Because of bearish patterns I am short the S&P with a stop just above yesterday’s high.
I’m watching financials , adds JJ Kinahan of TD Ameritrade. Financials are the one sector that investors feel will lead us up or down. So if there’s a chink in the armor this is the first place where it could show up.
What do you think? We want to know!
Got something to to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to email@example.com.
Trader disclosure: On Sept. 24th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F); Terranova Owns (F) Calls And (F) Puts; Terranova Works For (VRTS); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman Owns (RIG); Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (AA), (BX), (EEM), (RIMM), (BAC), (RIG), (SBUX), (FXI)
For Steve Cortes
Cortes Is Short (FXI)
Cortes Owns S&P Futures
Cortes Is Short The Euro
Cortes Is Short British Pound
For Mark Mahaney
Citigroup Has Received Compensation From (GOOG)
(GOOG) Has Been A Client of Citigroup In Past 12 Months
Citi Is A Market Maker In Shares Of (GOOG)
CNBC.com with wires