Hard to sugar coat this one. The underpinnings seemed to snap today as stocks ran lower. It is possible that they want to go down and retest last week’s lows (SPX 1926 intraday) and run it higher again. This remains to be seen. For the day the SPX/DOW were -1.55%, and the NDX/NAZ were -1.50%. Bonds rallied 21 ticks, Crude dropped $1.55, Gold rose $4, and the USD was lower. Support levels right now are 1928 and 1900.
Its unsettling to see the Russell 2000 act so poorly and its back to important support at today’s closing level.
I added TWTR as a long today as it showed good relative strength and is at a breakout level. In a better tape I think it rallies. BITA was a fail from the get go and was one of the fastest stops that I can remember. When they sell the risk on names like they did today, they have a tendency to do it fast and without much forgiveness.
Let’s sit tight and see what they do tomorrow. See you in the trading room in the morning.