STOCK CORRECTION DEEPENS -- NASDAQ AND S&P 500 BREAK JANUARY LOWS -- DOW FALLS BELOW 200-DAY LINE -- SO DO BANKS, MATERIALS, SMALL CAPS, AND TRANSPORTS -- 10-YEAR TREASURY FALLS TO RECORD LOW

MARKET ROUT CONTINUES... Stocks  tumbled for the second day in a row and in heavy trading once again.   And important support levels are being broken.   The S&P 500 and Nasdaq fell below their January lows today and further below their 50-day averages in pretty decisive fashion.  Charts 1 and 2 show the negative price and volume action in both indexes.   The Dow has done even worse.  Chart 3 shows the Dow Industrials falling below its 200-day moving average.  All of that taking place in heavy trading.   The broader stock picture looks even worse.

MARKET SECTORS ARE UNDER HEAVY PRESSURE... All eleven stock sectors lost more ground today with the biggest losses in energy, materials, industrials, and financials.  The Materials SPDR (XLB) ended below its 200-day moving average; while the Industrials (XLI) and Financial SPDR (XLF) are threatening their 200-day lines.  An index of bank stocks fell below that long-term support line.  So did Dow Transports and S&P 600 Small Cap Index.   To make matters worse, the 10-Year Treasury Bond yield closed at a record low today.    It seems clear that stocks have entered into a full-flown market correction which will probably get worse before it gets better.