The last major index to top its 2019 YTD uptrend was the Nasdaq 100 on March 21st. All of the market indexes are now falling toward (1) a break of the March 8 lows and then (2) a break of the Dec 27 2018 lows. It is that second leg down that we should see a slew of sell signals both in major market indexes and individual stocks. It will be a prelude to a bear market summer that will not reach its lows until the traditional Sep-Oct crash window. While we wait for the index sells to kick in, there should be individual sells from stocks and sectors front-running the rest of the market lower.
Today's deep drop and recovery makes no sense to me at all. Sometimes these quirky short term ups and downs seem created just to keep the big picture out of view. But there it is in the chart above, loud and clear.