In a recent missive (Can The Market Survive the Mo-Mo Meltdown?) we noted that momentum meltdowns don't necessarily lead to serious declines in the blue-chip indices. We looked back at history and found that there have been times (5 to be exact) where the Dow and S&P weren't dragged down when the music stopped in the mo-mo names.

In fact, there have even been times where the S&P moved higher while the momentum meltdown was occurring. However, the key takeaway from our look at past mo-mo meltdowns was that the damage in the high fliers often leads to a deterioration in investor sentiment, which, historically, has led to longer periods of "sloppy" or corrective action.

Therefore, the primary question of the day is whether or not the S&P 500 and the DJIA will be able to ignore the severe corrective action that has taken place in the biotech, internet, and social media names. Will the broad market just ignore the carnage in the micro caps and march merrily higher? Or will the sloppy action cause investors to lose confidence and eventually head for the exits en masse?

So Far So Good, Right?

The S&P 500 closed Thursday about 5 points (or 0.26 percent) from the recent all-time high set on May 13th. As such, the bulls argue that the meaningful correction that almost everyone on the planet has been looking for, doesn't appear to be happening. And if the market hasn't tanked during the much ballyhooed "Sell in May" period this year, well, the thinking is that maybe there won't be a correction after all in the near-term.

However, the key to the bull case would seem to be the momentum names. IF (note the use of capital letters) the worst of the selloff is behind us and ...

To say that this is a tough market may be the understatement of the year so far. Lots of areas are getting beaten to a pulp daily, the economy has sputtered, the masses have been fooled by the direction of ...

To say that this is a tough market may be the understatement of the year so far. Lots of areas are getting beaten to a pulp daily, the economy has sputtered, the masses have been fooled by the direction of ...

In yesterday's missive, we talked about the idea that really big, really bad bear markets just don't happen that often. And since investors were treated to two devastating bears within a 9-year stretch, most folks are keeping their eyes wide ...

As the saying goes, the stock market likes to climb a wall of worry. And what a wall we've got these days, right? There is Russia, the mo-mo meltdown, China's sagging growth rate, the potential for inflation, the aging bull ...

The question of the day is relatively straightforward at this time: Will we see a meaningful decline (defined as a loss of -10 percent or more) on the S&P 500 in the near term or not?

From the bears' perspective, ...

The question of the day is relatively straightforward at this time: Will we see a meaningful decline (defined as a loss of -10 percent or more) on the S&P 500 in the near term or not?

From the bears' perspective, ...

By now, you are no doubt aware that there is a major dichotomy occurring in today's stock market. 2013's big winners are suddenly 2014's misery positions. Mo-mo has become a no-no. And many of the former leaders have been beaten ...

While the exploration of the various catalysts that might trigger the next bear market in stocks is certainly an important endeavor, the near-term action in the stock market is fascinating to say the least at the present time. Thus, we ...

To be sure, the current stock market environment is challenging. Intraday volatility is quite high, the major indices are not marching to the beat of the same drum, and holding the wrong stock or sector ETF has proved to be ...

To be sure, the current stock market environment is challenging. Intraday volatility is quite high, the major indices are not marching to the beat of the same drum, and holding the wrong stock or sector ETF has proved to be ...

Paul Schatz is filling in for Dave M. this morning. Without further ado, here is Paul's take on the current "state of the markets."

2014 may be young, but so far, it’s exhibiting a very different character than 2013 with ...