SPX opened below 2800 and mid day tested below the 200 SMA. However, there was no panic selling and a few dip buyers showed up. SPX ended the day 17 points off the low. Breadth was -65%. New highs dropped down to 73. New lows spiked up to 205. That is a new high number for this pullback.
The futures have not been this low since back in March. They show a break of the 200 SMA and then a rejection of that MA on the bounce attempt. That probably opens the door to more downside.
The red count was up a bit more, but remains below the oversold level. The intermediate indicator needs to get back above 50 before we can talk about this correction being over.
I am not hearing any fear or panic. I think I even heard people talking on CNBC about the lack of panic selling. That generally means there is more to go on the downside. The bulls may mount a bounce here off the 200 DMA, but they will have to show they are serious to make a convincing bottom. A bounce here to test 2800 from below would not be unusual. I think the lack of panic indicates there could be sellers still lurking on strength though. The 2750 and 2650 targets are waiting down below on further weakness.
Bob
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