Today was the third weak open in a row, but the bulls were not able to reverse us higher. We failed to bounce 3 times intraday and closed in the lower area of the trading range. The bulls have burned a lot of buying power on the recent bounces. Breadth was 4 to 1 negative. Banks were the biggest sore spot again.
Volume ticked up slightly compared to yesterday. The S&P 500 is back to support around the 50-day simple moving average in the 1175 to 1180 range. I was marveling at how similar the current pattern looks to the flash crash and thought we couldn’t possibly repeat the same pattern only months apart? We did not drop as far initially, but we bounced for three days on the daily and gapped down. The big picture is becoming grimmer with another failure at the 1200 level and the news flow has certainly taken a turn for the worst. We are a bit oversold and we have the holiday spirit. Can the bull muster a bounce Wed or Friday?
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