U.S. markets turned red on Wednesday as taper fears continued and indexes recoiled from overbought conditions. 

The major news event was the budget deal which averts a government shutdown in January which is good news for stability but bad news for markets addicted to easy money. 

For the day, the SP500 fell 1.1%, the Dow Jones was down 0.81%, the Nasdaq shed 1.4% and the Russell 2000 small caps were off 1.6%. 

Today's sell off was the largest daily decline since November 7th, but the major U.S. indexes still sport healthy gains for the year to date.  The SP500 gave up the psychologically important 1800 level and the Dow Jones Industrial Average remained below its magic number of 16,000. 

Costco missed profit estimates while MasterCard instituted a 10-1 stock split to make news in the retail finance sector. 

Tomorrow brings the widely watched November Retail Sales Report, however, the event everyone is waiting for is next week's Fed meeting and news of the Fed's plan for tapering its bond purchases. 

Wall Street Sector Selector remains in "red flag" mode.