The markets limped into the close giving back all of yesterdays gains and more. Every sector finished in the red, breadth finished over 3 to 1 negative and volume was high. The mood is sour, the technical picture damaged and news flow poor.
Unfortunately we still do not have any major events in the way of earnings for a couple more days. With the lack of any catalyst we suspect that the markets may continue to drift mindlessly focused on the international concerns and the potential for a depressing earnings season.
The greatest thing about today is that it is behind us however we are quite disappointed to see all of yesterdays gains disappear. We saw what can happen with even the slightest ounce of positive news and are starting to wonder if even the worst may be being priced in.
As we went into the close we sifted through
some of our favorite charts to reveal the obvious, but interestingly there
was not enough damage to have us throwing stocks into the fire. This may
change quickly, but for the time being despite the prevailing weakness, we
are going to hold strong into earnings season. Either charts will start to
break down and shake us out, or a catalyst such as we saw yesterday will
spark a nice bounce once again catching most by surprise.
Have a good evening.