Thursday, July 15, 2010
The internals today are quite week, but not alarmingly so. On the NYSE, 73% of stocks are trading down and 81% of volume is to the downside. On the S&P, only 75 stocks are trading higher. So the internals are weak, but not so much to fully support wave 3 at various degrees.....YET. It's still early and there's plenty of time to get some momentum behind this decline and accelerate it lower.
The S&P had no problem taking out the 1090 area I cited yesterday so at least a short term correction of the July 1st rally is underway in my opinion. For the larger bearish count to be in play here (wave (iii) of 3 of  or C), I'd like to see this trend of lower highs continue until we can count a nice completed 5 wave impulsive decline. Right now, 1090 should act as resistance, but the 1095 area should hold, otherwise it would signal that this decline was just a correction and that eventually we'll see new highs in the coming days.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.