If you've been looking for some kind of defining market 'tell', strategic investor Doug Kass says look no further. It arrived in the form of Wednesday sharp reversal.
As you may know, Wednesday was a nasty day on Wall Street; by the close the S&P recorded its worst 1-day decline since August.
In fact, all 10 Standard & Poor's sectors ended more than 1 percent lower with banks the worst of the bunch. Also, all 30 stocks in the Dow industrials closed in negative territory.
Of course this isn’t the first time that the market has looked like it was on the verge of something serious – in fact, it tends to happen somewhat regularly. And each time the market has reversed back to the upside.
But Kass thinks this time will be different. He points to “the obliteration of a week of gains in only 3 hours of trading” as a very telling development.
The reversal was “a blow to the groin of a largely bullish investment community that has been convinced that a smooth and a self- sustaining economic recovery was in place,” says the Seabreeze president and CNBC contributor.