Broad market rolled in the afternoon on a delayed reaction to a Bear Sterns hedge fund liquidation. Energy started off weaker than the broad market on crude inventory build and strong gasoline yields (presumably) and then extended its losses another 100 bps in the last hour and a half of trading in sympathy with the broader market selloff.

Energy stocks (OSX $262, E&P $515, XOI$1398) – Had to have one of those type days at some point. Notably, first time in many weeks that energy stocks reacted to poor fundamental datapoint (oil inventory / oil price). Group sold off hard before broad market then took it lower (closing on lows, energy down 2.5-3%, S&P 500 -1.4%). Says perhaps market trading sentiment shifts more toward neutral from full speed ahead. Still plenty of dip buyers out there though.