Yesterday the S&P clearly broke through support on an intraday basis. Yet by day's end, it had forced a recovery very near the support line.
The big story of the day was CSCO and the NASDAQ trend. Cisco Systems broke down in a big way and took with it big cap tech as the NASDAQ trend gave up the ghost. The break down here looks very similar to July 31 when money stream also shot sharply lower on a big sell day.
If indeed this is another July 31 in the making, we will be looking at a dead cat bounce over the next few days that should be used as an opportunity to start working into short positions getting ready for the next shoe to drop.
Unless the Fed comes to the rescue again, and we doubt they will this time, the market is likely to favor the short side for the next few weeks.
No comments:
Post a Comment