While it would be nice to rattle off positives to point out after today's sell off, it just isn't there and today's action was down right challenging. Breadth remained poor all day, volume picked up to the downside, and some select small cap Sharkfolio stocks spent much time in Painville.

The draw can be attributed to the poor comments out of Google (NASDAQ: GOOG) and solidifies how mistrusting participants are of this market. Many good stocks that have nothing to do with Google were thrown out on knee jerk selling and we suspect will set up for some good buying opportunities as the dust settles.

Something to point out today was the resiliency in the chip sector. The Semiconductor Holding Index (SMH) held critical support of $37.00 and looks to be putting in a bottom. We'll be watching this area carefully as a rotation into the semis would bode well for the market to move higher.

Despite today's action we did very little selling as individual charts continue to look fine and the major indexes still remain technically healthy. Despite the failed breakout in the Nasdaq we were pleased to see the index hold its 50 day moving average and we aren't too quick to throw in the towel on tech.

In summary we simply can not kick the feeling that we are setting up for a move higher. While it would be very easy to switch sides into the bear camp as it definitely seems much more popular at the time, we don't see a strong case for this argument. Until we do we'll remain long awaiting our thesis to play out.

Have a good evening.

RevShark