Dave’s Daily Market Comment, August 17, 2009
Our son made me watch this gruesome movie, The 300, but the above line from it reminded me where the S&P 500 is presently (near 975) and a line bulls must defend. But, that’s looking at daily charts whereas longer term weekly and monthly charts may have a more tolerant feel and we’ll look at those further below.
It does seem that an accumulation of overbought conditions; an absence of positive news (or, even bad news to spin as positive); bullish fatigue noted here last week; heavy insider selling; and, more importantly, investors doing some old fashioned reasoning (ya know, bad news is really bad news) finally caught up with markets today.
I did note discomfort with things last week as rallies were feeble and selling seemed more intraday dominant then headlines would lead you to believe.
Volume today was heavier to the downside than previous up days which isn’t a good sign but has been the hallmark of this market for some time now. Breadth was decidedly negative although, as this is being done, it doesn’t appear as a negative 10/90 day.
More of Dave’s Daily here >>.
