We need another day or two of selling, that should get us to near term target 1160, then we turn around and retest the highs.
If we don't hold 1160 we go to 1120 next.
This was a day that was ruled by the bears; they appear to have reclaimed dominance. But can they keep it up?
Declining volume was higher at a ratio of 14.27 to one. The closing TRIN was 2.27 and the final tick was -190. The NYSE Composite Index lost -1.9% today while the SPX lost -1.65%.
For the NYSE, relative to the previous 30 session average, volume was 28.92% above the average. Of the last 15 sessions 7 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 22 sessions ended on a positive tick, 6 of last 10. For the SPX, the day's volume was 111.3% of the average daily volume for the last year. Volume was 110.8% of the last 10 day average and 135.4% of the previous day’s volume.
Really negative breadth as would be expected on a day that lost more than 1.5%. New Lows blew away New Highs today; that hasn’t happened since the end of August. The ten day average of Net Advancing moved below -200; it hasn’t been there since September 1st. The NYSE Composite underperformed the SPX today; often a bearish sign. And volume increased today.
Total tick for the day was -301,000 and the average tick for the day was -196. There were 42 ticks greater than 600 and 271 ticks more extreme than -600. There were 2 ticks greater than 1000 and 44 ticks more extreme than -1000. The tick action suggests institutional distribution.
Volume surged in the morning right at the fall off the cliff for prices. Looking at the breadth indicators, they’re all bearish. McClellan Oscillator is below -300 last time that happened was May 24th.
TBT was down big yesterday as I think the TLT will try and dead cat bounce to 200dma. TBT holding steady for now with that position.
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