This is not good.
The Russell has fallen 5%, from 2,450 to 2,327.50 (spiking even lower yesterday) and is still weak this morning. Overall, we're back to the pre-spike end of October, which was also the beginning of September (when we called the market toppy and went back to mainly CASH!!!) and that was lower than the June and July highs which were both lower than the top of the Russell we hit in March.
So our broadest index, the one that measures 2,000 companies that are more Main Street than Wall Street, is struggling because, while Coca-Cola (KO) may have pricing power because you are thirsty and don't care about a nickle, the 7-11 you buy it from still gets the same $5 from you for your visit – you just leave with less stuff. We've all experienced that at the grocery store. This is especially true for consumers who are being robbed at the gas pump every week for twice what they paid in 2020.