Thursday, January 28, 2010

01.28.10 - Support Breaks Hard

Internals are heavily negative, and, although price is holding at the mid-day just above SPY $108, this seems to be the second leg down that many Market Rewind chat-room participants had hoped to catch on a firmer bounce -- the lack thereof probably being the strongest clue this was in the works.

In particular, in looking at many of my system indicated buy candidates, I am seeing shocking weakness that far exceeds what is being reflected in the major indices.  I don't want to be too negative and miss out on the possibility of a reversal bid, and as full disclosure I've increased my long line a bit here, but not good.  Think anyone is concerned about the GDP report tomorrow?

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