The round 1,100 level has proven strong resistance once again and we finally have seen some light selling pressure, which at these volume levels may be more of buyer’s strike.  Semantics — either way, the VIX has been steadily rising after an extended period of abnormal stretch below its near-term averages, Cumulative Tick is very negative, Down Volume is extending its advantage, and the Advance – Decline line is pushing -3,000.

lipstickpig.jpgThis is not unexpected after eight days of vertical climb.  But really, how many times can the bulls juice the day on better than expected numbers when their absolute values remain horrid.  500,000 more jobs lost!  Chinese exports down +10%!

Just how much lipstick is left in the tube for that pig? Well, probably more than I can imagine, but either way this is a healthy move needed if the markets are to continue their bullish rise. Just now the SPY lows have held a retest, but again, for now internals suggest this downside range could continue to expand.