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This market is in serious trouble. For three years, traders have been accustomed to buying stocks on modest dips of 3 to 6 percent or so.
It's not working this time.
There have been modest attempts to buy in the past week, but the buying interest has been light and it has made no difference.
At some point (this has been happening the last few days) buyers realize they are getting no traction. No pickup when Europe closes at 11:30am ET. No closing-hour rally. Nothing.
Just drifting lower.
The response: a buyer's strike. Buyers step away until they see a buyable bottom.
But that leaves the market vulnerable to additional downdrafts; that causes a spike in the VIX, which causes a spike in trading volume.
That is what is happening today. VIX futures are spiking: June up 4.5 percent, August up 3.3 percent, September up 2.1 percent. That gets peoples' attention.
And volume is spiking. We will do north of 4.5 billion shares on the consolidated NYSE tape today, the highest in a month.
a) 10-year U.S. Treasurys and the German bund both end at historic low yields.
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