There is something certainly giving sellers a leg up here with continued selling pressure and today it was the entire market. Small caps measured by the Russell 2000 lead the entire market lower, but the Dow and S&P 500 weren’t spared today. For much of the day the market was able to find buyers to keep the flood from overflowing. However, just have 1pm sellers were able to gain enough momentum to push stocks much lower. Volume gave a clear indication the institutions were doing quite a bit of selling on the day. It is best to be prudent and obey price signals. This market correction can be over in a day or last much longer. As long as you follow price we’ll have no problems.
SPY and DIA continue to stay above the fray while IWM and QQQ are leading the market lower. We continue to see ATR expand across the board certainly throws caution to the wind. Now there may be many reasons for the current environment. Russia may invade more parts of Eastern Europe or there may be a large Chinese bank collapse. Even nothing at all, but whatever the reason we want to be on top of this move.
We’ll be back with more tomorrow, but the one thing we know now is the market trend is lower and we do not want to fight it.
