The markets were closed Wednesday in honor the late President George H.W. Bush, which could turn out to be a good thing as the markets started out considerably weak. The S&P 500 (SPY  ) sold off 3% Tuesday as excitement over the trade truce between China and the U.S. began to wear off. With conflicting statements out of the White House and no real specifics about the deal, investors turned sour on the truce. The SPY selloff gave back nearly 5 days of gains and about half of the most recent run up.

The Nasdaq 100 (QQQ  ) took the worst of the selloff on Tuesday, losing nearly 4%. Remaining under the 200-day moving average and still in a short term downtrend, investors are running out of options to be bullish into the year's end.

Semiconductors (SMH  ) were one of the weaker areas of the markets as investors began to lose faith in an actual trade deal taking place. Given that many of the chipmakers rely on Chinese business, this trade war and current tariffs have really weighed on the sector overall. For the week the sector is now negative by about 4%.

Home builders (XHB  ) were in focus through the early part of the week as luxury home builder Toll Brothers (TOL  ) reported a slowdown in sales of new homes. The CEO acknowledged the slowdown, citing rising interest rates and the media's constant attention on the weak sector. The sector remains in bear market territory for the year.

Financials (XLF  ), which have been an underperforming area of the market, continued that pattern this week so far. The XLF sold off over 4% on Tuesday, moving below the recent range and seeming to put the final nail in the coffin for the potential of any rally into year's end.

Finally, Utility (XLU  ) stocks were one of the bright spots to start the week as investors continue to flock to the safety of the sector. The XLU broke to new highs on Tuesday and remain in a very steady, but choppy uptrend.