Yuck Markets!

Here is the good news! On a near-term basis, markets are extremely oversold so bounces could be in order. Not sure there is much more in the way of good news because:

The DOW was up 200 Wednesday and gave it all back and more. Leading the DOW up early was the worst ares as the dollar plunged…lifting all the commodity-types. But when the DOW was up 200, for a change, the leading Nasdaq-types could not budge, indicating possible trouble for them. When the DOW came in, those Nasdaq-types were yonked.

At the very least, it is imperative to recognize that leadership remains narrow. At the very least, you must continue to recognize that too much of the market remains bearish…keeping a cap on further rallies. At the very least, you must recognize with so much underneath-the-surface weakness, it is easier to take the market down.

Easy big fella! Take your time and be patient here as narrow markets usually lead to trouble.