The SPY today made a token new high for the move and closed below yesterday's close. Technically this is a reversal day, and must be given some bearish weight. Intraday, we witnessed the same failure of demand that occurred yesterday, but without the short covering. The market fell until 9:55 EST, supported as mentioned yesterday at 919 and then rallied for the better part of an hour. Both were on light volume, under 5 million shares in 5 min on the spy. Until a little before 2:00 the market whiled away in an even lower volume trading range and then broke to the upside making a new high for the move. Like yesterday this was an upthrust, with little obvious demand, ranges contracted and it ended with an outside key reversal. The market started down with closes at the bottom of the range on each 5 min bar,but never showed any ease of movement. Again the market was supported at 919 and then rallied into the close. Again as yesterday with the move to new highs for the move we were unable to generate demand. No supply overwhelmed the market either. By one of my little rules, we have four days to develop supply.
The financials are now the downside leaders, should the market break.
Tomorrow perhaps we will gover the euro fx and the dx and maybe gdx
