Market players found a few other reasons to intensify their selling. China announced some surprise weakness, Spanish debt was downgraded and there were reports of some unrest in Saudi Arabia.  In addition to breaking below the current range all major indices, except for the Dow, are now under their 50-day simple moving average.  We are starting to downtrend. We have had a series of lower highs and lower lows and have breached a number of support levels. Overall volume has been higher on down days lately, which is an indication of institutional selling.  To make matters worse, we are POMO-less until next week Monday. The mood certainly feels gloomy with so much bad news, but we are probably close to a bounce. Unless we get some good news catalyst the first bounce are often sold from trapped longs so expect some choppy action.Related posts:
