Nice bear, sweet isn’t he? So well behaved. Almost impossible to believe that he ripped the heads off the financials like so many salmon swimming upstream. I’m starting to wonder if we haven’t reversed a rally that took six weeks to build, I’m not surprised at all, just wondering. {+++}
Net on the day the Dow was down 289.60 to 7841, the S&P 500 down 37.21 to 832.39, and the Nasdaq 100 down 44.55 at 1309.37. The Philadelphia Semiconductor Index (SOXX) fell 6 percent, or14.62, to 240.19.
The technicals were extremely negative, with 300 up and 2800 down on advance-declines on New York and 454 and 2640 down on Nasdaq. Up/down volume was the story today, with about a 22 to 1 negative ratio on Nasdaq on total volume of more than 3 billion, and more than 27 to 1 negative on New York on total volume of close to 1 3/4 billion.
This is a fast money market, not sticky yet, and fast money runs like a scalded dog when it smells trouble. Remember that the next time you get in a comfort zone. Complacency kills and this market got too comfortable. Will the sell off continue? It went out ugly so we’ll see. I bet yes and I think XLF needs to test $9.50 again, if not lower.
Here is a link to a chart analysis of FAZ, I apologize for the link, I want to post the actual image and I hope it works, I am having huge problems with Stockcharts.com, but I will have it resolved tomorrow evening.
Although it was a broad sell off today, keep a close eye on the financials, they led us up and I promise you they can take us down.
I’ll see you guys in the morning.