The volume dropped a bit, but was still above average. The dip buyers were out early this morning, but the sellers hit the bids throughout the day. Breadth was -61%. New highs dropped precipitously to 79. That is a major change from 283 yesterday. That is the lowest number since mid Nov. New lows were up a bit to 37.
The futures closed below the 20 SMA, but have not confirmed a break yet.
The green count dropped considerably, but is still above 50.
Most European and Asian markets were down today so the global de-risking may be starting back up again. Copper dropped considerably on fears of a China slow down. That may have been what set the tone for world markets. In Daily update 10/30 ERCI video on profits growth slowdown I reported ECRI saying their global long lead indexes had rolled over and they were expecting the global economy to slow. We may be starting to see some evidence of that. The high volume of the last few days really looks suspicious to me. I think there is a considerable risk we are making a significant top. Bull market tops happen when things are as good as they are going to get. That is a possibility here. I think it is clear we need to keep abreast of what is going on in China and global markets. Volatility may be starting to pick up.
Bob
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