Just when you thought it was safe to get back in the water the FED does a whack-a-mole and closes the door on QE2. Actually, this was the pre-set course with July 11th already announced as the end of POMO but traders are an optimistic bunch and eternally hopeful that the FED would do more to prop up the disappointing recovery. Not so. Yesterday’s last hour sell down was a solid clue of today’s drop. The NYAD opened at .07 ( a <1% occurrence) and 60 minutes in is struggling at a downright bearish .17. Volume Buzz is BIG across the sectors while the VIX has now popped 14%. Last week I mentioned the likelihood of a 200MA retest and with Fridays’ negative bias tomorrow may be interesting.
