The DOW had a chance to hold the 200 day. The S&P had a chance to hold the 50 day. In fact, markets were very strong out of the box yesterday…but that big reversal changed it up.
AS WE HAVE TOLD YOU, more than half the market was already in different stages of bearishness with many other countries in dire straights. The question was which side would blink. Would the worst turn up or would the divergences lead to the best coming down. Unfortunately, they are now coming after the strong stuff.
On top of that, the financials are breaking the important lows we have talked about, the semis are melting down, foreign markets just worsen and the Mets still suck.
Whatever is going on is going on. Be very careful of the normal “everything is ok” talk as the market has never cared about opinion. The big money, institutional crowd votes not with opinion but with their selling or buying. They continue to be sellers as markets have deteriorated….especially around the globe.
Near term, maybe, maybe not we get a bounce. We are still in the end-of-quarter window dressing period as well as pre-holiday. Usually, this week is supposed to have some seasonal strength. So far, ain’t happening.
Lastly, our theme on the “coins” continues to come to fruition as they are now taking a “slow death” move down below support. We continue to be amazed as to how many charlatans are still out telling us to buy even though the “coins” are down 70%+ with many much much worse. Remember, these are the same people that told us price would go to $100,000 with one predicting $1,000,000. We still haven’t heard one logical explanation why these coins have any benefit economically.