Who is Double-Dipping?

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The market is currently well off of this morning’s lows, but still down convincingly across the board. There seems to be nowhere to hide with regard to stocks, as energy, financials, and industrials are leading the charge lower. When dealing with this type of price action, my experience has taught me that the best thing to do is usually step aside and let it play out. The market can turn on a dime, so shorting is not nearly as easy as it may seem at this juncture.

I also see that 1150 on the S&P 500 is still acting as price magnet, despite today’s broad range. Given today’s action, I think a close above there would be a very minor victory for the bulls. Gold, gold miners, Treasuries, and the Dollar continue to act as safe havens or as a “fear trade,” if you will. Those are still areas of the market and assets that you would look for to roll over if the bulls are going to make a dramatic comeback.

The good news for the bulls is that we have not broken down from the August lows, and are still well above them. Perhaps this will be the true double-bottom if we retest them this month, down at 1101-1120. Either way, everything seems to be as negative as can be out there–Including technicals, macro, sentiment, etc.. I do not see much gray area here, in the sense that we are either flopping around at a major bottom, or are on the cusp of a fresh leg lower.