The one way market continued today and having the “C” word in the title may appease the stock gods. The S&P 500 has gone down for five straight days and 11 of the last 13 days. The market is too stretched to the downside to support aggressive shorting, but it is showing no signs of a bounce and a we can see from last year deepest drops are often seen during extreme oversold readings. Facebook will start trading tomorrow; the market was unable to muster even a momentary bounce today. The sentiment will be even worse, if Facebook does not trade well tomorrow. The .382 Fibonacci retracement of the rally off the October lows comes in at 1289.60 and that could be the next area close to the 200 day if we fail to bounce again tomorrow.
