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We are really starting to see the bear market percolate as stocks took another tumble on Friday capping off a very difficult week for the stock funds. The Dow lost 486-points but there was some late buying as the indices approached the June lows so perhaps this week we'll see some kind of oversold / double bottom rebound. Bonds were down as short term yield moved higher again.

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The bear market prevails. There was little hope this week's FOMC meeting would bring in buyers, but the level of selling caught most off guard. The trading range was was relatively tight from Monday's open up to the FOMC policy statement later in the Wednesday. The Fed announced the expected 0.75% increase in rates but what was a surprise was their intentions to keep raising rates faster and further than previously projected.

This was enough spark a multi-day sell-off ...

Another down day for the stock market on Thursday as the downside momentum is gaining steam. The Dow lost "just" 107-points but higher yields in bonds and rising interest rates are starting to put some heavy pressure on the broader market, particularly small companies that depend on credit, and those indices suffered larger losses. The dollar was up, and bonds tanked as yields pushed higher again.

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Stocks were up most of the day yesterday before the FOMC meeting let out and the 0.75% interest rate hike was announced. When the dust settled two hours after the announcement, the indices were down 1.5% to 2% across the board. The Dow lost 522-points and an important gap was filled on the S&P 500 chart. Bonds were up as yields spiked, then reversed during the day. The dollar made a new high.

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Once again we saw some buying late in the day but it wasn't enough to push the indices back into positive territory after a sharp post-lunch decline. The Dow lost 313-points and we saw 1% losses in the big three indices, while small caps, the overseas markets, and the Transports all saw losses near or above 2% on the day. Bonds were also down sharply as yields keep rising into today's Fed interest rate decision.

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