ATR - End of the Day Comments

The markets closed off their lows for the day after some precarious strength in the final hour that looked and felt like a large program covering index shorts. Commodities lead us to the down side and breadth finished the day over 2 1 negative in the NASDAQ and over 3 1 in NYSE. Volume was heavy which notches another distribution day.

Despite some intra day signs of strength, meaningful buyers aren't willing to step in ahead of tomorrows CPI data, which may be the catalyst for further selling or spark a decent rally should the data be market friendly.

It is very clear that as markets around the world suffer severe draws and commodities get pummeled, participants are looking to sell anything and everything despite sector affiliation, valuation or interest rate sensitivity. The unfortunate thing about it all is that we aren't going to see any stabilization until the liquidity issue is much more clear.

We are starting to see so many solid earnings winners that have been beaten to a pulp and look very enticing however meaningful buying at this point is simply not prudent and anything other than a nibble, such as our HSR alert, must be put on hold.

This action is extremely challenging and is testing the best of us. Sooner or later we will see some relief but well have to wait at least another day.

Have a good evening.

RevShark