Narrow rallies lead to…

Do not forget the Fox Business Network presidential debates tonight. The first debate moderated by Trish Regan and Sandra Smith. The second debate moderated by Neil Cavuto and Maria Bartiromo.

On purpose, we wrote to you yesterday about the narrowness of the rally. On purpose, we wrote to you that this narrowness is one that eventually caused the problems in August. But just because there is narrowness, it does not mean there is impending doom. The fact we had an icky down day yesterday just tells us that things are going to get tougher. We saw some leading names give back two weeks of gains in one day. We saw continued weakness in the areas we told you were not participating.

So its back to careful time here. We would throw in a dose of patience to see if this decides to worsen on this pullback. We do suspect, at the very least, we may get some time and price here. Pay attention to the long list of areas that we are bearish on as they will not get any better.