SPX was up early in the day as dip buyer rushed in after yesterday's decline. However, sellers showed up around 10:00 and sent most indexes down. After 90 minutes or so the buyers took another crack at it. The beige book at 2 PM brought the sellers back out again. The breadth was -57% which is about in line with the size of the move down in SPX. However, new highs dropped down to 18 while new lows increased to 28. The boys are losing their enthusiasm for pushing stocks to new highs while starting to sell those losers again.
The futures ended the day below the 18 SMA. They have not confirmed the break yet. If this rally is to continue I would say the bulls must show up tomorrow. Another down day would likely tip the scales to a trip back to the lows.
The short term trend in the R2000 turned neutral today. The others are hanging on by a thread. Will earnings be more helpful tomorrow? XLF was -.82% after JPM and WFC reported. This sector will have to catch a bid or the market will continue to be under pressure. The global economic data continues to be poor. To get this market higher it will probably have to have some positive outlooks going forward. So far those have been in very short supply.
Bob
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