OBSERVATIONS

We have been telling you that there were only a few groups left holding up the market. Recently, oils went bye bye…leaving the semis and financials as the ports in the storm. We are letting you know that the all-important semis are now looking to be in trouble here. If they go, all that is left is the financials. This morning, it “feels” like and looks like all selling of other areas are landing in the financials. Remember, on Wall Street, many have to stay close to fully invested so they “park” money in places that continue to hold up. So we watch financials. If this group goes, it will only add to the bearish action we are seeing.

Fear has definitely picked up so bounces can occur at any time but that’s the trees. The forest leaves a lot to be desired. As always, if anything changes…