The market's internals are extremely weak as seen from my Scottrade market insight page above. You can see that NYSE decliners are outpacing advancers 11.5 to 1. Down volume represents a whopping 97% of total volume! Also notice above that of the 500 stocks on the S&P 500, only 16 are trading up today.
This extreme weakness shows absolutely no one is buying at all today. Seeing as that the S&P broke its key level of 850 with internals like this, it's extremely bearish and ultimately confirms that the charge to below 740 is underway. It won't get there in a straight line, and with horrible breadth like we have today, I wouldn't be suprised to see a snap back rally start tomorrow. This is not a prediction, but just acknowledgement.
If we get a major selloff into the close today with the S&P down more than 33 points, then I will take more profits on some of my positions. With such a constant and large decline like we've had the past week, I'd be a fool not to take some profits off the table.
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