With technology, energy, commodities and financials all under selling pressure, the beat down was on today. Volume picked up with breadth about five-to-one negative. In addition, earnings are being sold. We have not had a decent down week for a while; I think we have a good shot this week, but the burden of proof is still on the bears.
This is the first major dip in 6 weeks and there are probably eager buyers waiting to buy this long awaited first dip. Technically we held the 1160 area well and that is a plus. Even if we test the 1150 area, we are still in good shape. Most importantly, we still have on going POMOs pumping in more money and the widely expected QE II beginning of November.
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