More Distribution

The selling that started yesterday intensified today on the Dow and S&P 500. Both indices notched their second distribution day in a row. The S&P has now slipped back under its breakout point, and the Dow is closing in on its breakout level. There’s talk of this sell-off being related to terrorism fears on the anniversary of 9/11. Assuming tomorrow passes without incident we may be setting up for a bounce on Friday. That scenario seems a bit too obvious to me, but sometimes the obvious works. Regardless, I have some other commitments that will keep me out of the market until next week. I’ll post again over the weekend. Let’s hope tomorrow is uneventful.