Stocks fell sharply at the open today and recovered some losses in the final hour. Catalyst cited for the drop is the Evergrande Property likely default on its extended indebtedness. This could create a possible "Lehman moment” for China. Stocks have not been making headway for the last two weeks.
An additional uncertainty is the Federal Reserve meeting this week and possible announcement on Wednesday of a coming reduction of bond buying.
The NASDAQ, the S&P 500 indices remain strategically Bullish; Europe, Mid, Small caps now Bear alert; Emerging Markets, China remain strongly bearish.
Equity Styles: Large Cap Growth lead Value, Small Cap, Mid Cap and equal weight indices. All pulled back last week.
Leaders- Real Estate, Technology, Health Care, Consumer Discretionary