More of the same…but!

More of the same. Commodity areas crushed. In fact, energy continues its crash. Yes…that is a slow moving crash.

BUT…after the CENTRAL BANK-INDUCED climax low, we are finally starting to see some decent amounts of distribution. As we have stated, markets were stretched, extended and overbought combined with a massive dose of bullishness. This usually leads to some working off of the move and thinking there is a chance Monday’s action starts the process.  Markets have again been waaaaay overdue as they were juiced again by central bank’s maniacal easy money and printing presses.

On another note…NEW LOWS have picked up markedly. In fact, the number of new lows is indicative of a market that has already dropped a good 10%. But keep in mind, a ton of the new lows are in the energy complex and areas that are affected by lower energy prices. We already knew of these bear market areas.