Sellers returned to the market once again and this time NYSE volume notched a distribution day. The good news was the markets were able to lift off their lows. Crude traded below $37 a barrel before rebounding. A positive on the session was small caps finally were able to outperform the S&P 500. Dow Transports led the decliners ending the day down nearly 3%. Today’s action is not comforting to bulls, but it is not super bearish either. The market will likely continue this chop with the Federal Reserve meeting coming up in a week. We continue to remain cautious given the recent action. Distribution count is high and we continue to lack any buying interest. We have our game plan and will continue to execute.
This market is certainly not going to give up gains that easily. Today it appeared this market was going to cave, but support rushes in. Unfortunately, while the buying was a positive we didn’t get enough to really get excited about. We will continue to search out for new signals and manage our risk appropriately given the price action of this market. No questions asked.
More to come from this market, but the fireworks really won’t begin till next week. Of course, the unknown can always creep up on us. For now, in the known world our next big thing is the Federal Reserve.
