Selling pressure finally materialized today. Breadth was quite poor around 3-to-1 negative, and the banks fizzled late after a mid-day rally. The S&P 500 breached 1314 at the 50-day simple moving average briefly, and the Nasdaq broke that level with some conviction. We are oversold enough for some sort of bounce after 4 down days and the resumption of big POMOs, but one really has to wonder if the bulls have the ability to pull off another “V”-shaped bounce. All eyes will be on JPM earning tomorrow morning.
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