Correction Cuts Deeper As Stocks Slide In Fast Trade

The market's correction deepened Thursday as worries spread about the debt-burdened economies of Portugal, Greece and Spain.

Stocks also suffered from a disappointing jobs report, while ignoring better-than-expected news on factory orders and productivity.

The NYSE composite careened 3.6% lower, the S&P 500 3.1%, the Nasdaq 3.0% and the Dow 2.6%

Volume was up across the board.

Commodity-tied stocks — steel, oil, fertilizer, gold miners — took the hardest hits as the dollar rose against the floundering euro.

It was clear from the start, however, that few stocks would have a chance for a day like that.

Before the market's open, index futures were already down on news of European debt problems. Concerns centered on three pieces of the so-called PIIGS group, which includes Portugal, Italy, Ireland, Greece and Spain. While Ireland has already eased worries by cutting government spending, doubts remain about the other PIIGS nations' steps.

With that dark cloud hovering, the U.S. market was in no mood to take on additional worries. But that's exactly what it got. Jobless claims last week were worse than expected.

Fourth-quarter productivity was also reported before the open, topping views. But it couldn't undo the negative tilt. Stocks opened lower in heavy volume and fell further throughout the session.

All four major indexes closed at session lows and undercut the lows made since this correction began. The Nasdaq and NYSE composite are now 8% and 9% off their respective highs.

Leaders struggled Thursday. Recently, some stocks have fallen more than 8% below their ideal buy points. Others appear to be unwinding the gains from breakouts.

Investors who have raised cash — by cutting losses short, or selling before a gain cycles into a loss, or simply to lock in profits — have no reason to redeploy that cash. The market remains in correction and all stock buys should be off the table.

If you are still holding any stocks, be ready to sell if needed. Open no new positions until a follow-through day confirms that a new uptrend is under way.