The selling is continuing today, and has been pretty steady. Investors are finally taking into the account of rising inflation, and the possibility of interest rates being raised. With interest rates higher, it lowers liquidity. Liquidity is what has led to the large amounts of M&A activity that has caused this bull market to begin with. So decreased liquidity could spell the end of the billions of dollars in buyouts and takeovers.
Increased rates will also put more pressure on consumers, which is the other area in which I have concern. The credit bubble that already exists could be squeezed if rates climb.
I was really intrigued by the "full house sell" issue by Morgan Stanley's Teun Draaisma. The last time they issued this, it was April 2002, and has only been issued 5 times since 1980, with a subsequent drop in the market each time.
I'll continue to keep an eye out for new picks, but am pretty hesitant to buy into this market until we see stability.