If you are a fan of the long side, which most of us are, there was very little good news to be found today. Our momentum indicators are chanting in unison and the chorus is DOWN. Right now I would not put any faith in a support level as we are barreling down hill at a nice clip. If you are into shorting, now is your time.
The kernels of good news is to be found in that, at least for the near term, the market is over sold. Volume is not crazy which suggests that the selling is nearing exhaustion. We also see signs of life in the semiconductor sector (SMH, INTC), so that may be an indicator of better times to come.
Don't make any bets to the long side until you see at least two of our momentum indicators take a turn for the better. You can take solace in the fact that the market will not go to zero and that some day we will be surpassing the levels we are at today. Your challenge is to figure out how to profit from that when it happens. Keep watching our site, we will try to give you a little help.
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