Thursday, October 1, 2009
All Requirements Met for Short Term Bearish Case; October 1, 2009
The market fell hard today and did so impulsively (5 waves) as you can see from the above 5 minute S&P cash chart. More importantly, all the major indices confirmed the Dow's break to a new low from last week which eliminates the bullish non-confirmation I mentioned yesterday.
Internals are extremely weak with the NYSE sporting 4.47 stocks trading down for every one stock trading up, and a whopping 93% of volume is trading to the downside. The dollar also strenghthened last night and silver and the Nasdaqs are falling hard, and all sectors are getting hit. This is a broad based selloff and characteristic of a wave 3. I will post key levels that, if broken, will confirm wave 3 down being underway. But right now, it's looking good so far.