The sellers are relentless! I kept saying that today as the market just refused to rally. This felt like one of those days that finally flushes out the last of the sellers. Breadth was about 4-to1 negative for most of the day and there wasn't much of a rally attempt until late in the day. The Dow and S&P actually turned green after 3 PM but sellers stepped in once again to push them back into the red. Given how oversold the market is one would think that such a late day rally attempt would at least scare some bears into buying -- no dice. That makes me think that there's a good amount of forced selling (margin calls) going on. (We know that's happening overseas and at least one hedge fund has gone belly up stateside.)
The Nasdaq returned to its position of being the laggard index. However, it did get a decent bounce after taking out Friday's lows. It made a hammer-like candle today but it really needs some follow-through and to start making some higher highs. Otherwise it's still a seller's paradise.
The S&P 500 bounced off of its 200-day moving average for the second session in a row:
Worden's T2108 (percentage of NYSE stocks above their 40 day moving averages) is at 21.06 today. It's almost to that 'magic' 20 level. (It got all the way to 15 in April of 2004 -- I won't be surprised if it gets there again)
