Today was auspicious but not because of the daily action. The daily SPY broke through support to close after a wider range at the lows on less volume. It moved down easily with little resistance. The intraday es shows the same story however some support came in at the even number of 700 with volumes around 50,000 per 5 minutes. The largest intraday rally was 9 points. I have been pointing to an absence of real demand now for weeks and today it was evident. No buyers had to be filled up as we broke long term support. The Dow is clearly through its lows of the past 10 years and the spy is within a fraction of a point. These points gave way easily and without a fight. When something like this happens in a market, when very long term support or resistance is broken, it is as if a dam is broken and the flood can begin. Remember what happened to crude when the 1991 high was penetrated in 2004. The prognostic significance of these occurrences cannot be overestimated. It means something radically important has changed. The hardest thing right now is to believe what the charts are shouting---no demand--and how bad the consequences of that can be. The opposite occurred in the fall of 1994 when there was no supply and it lead to the greatest bull market in our history.
