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Big Bad Selloff

Friday, January 22, 2010 at 12:21 am

1

Today there was sell strength of 352, which indicates strong distribution.  We moved exactly to the end of the box after solidly breaking the prior days lows, and closed exactly on 1115 support (box low).  Tomorrow, I expect a bounce, due to a possible capitulation reading (see next chart).  It also depends on how the market acts around 1115.  If that level fails, then there will be some interest at 1100, and combined with three days lower, will create an interesting setup for Monday. Levels to watch are 1085, 1100, 1115, and 1130.

whole_rally

It should be noted though that there is a considerable deterioration in breadth, as both panes 3/4 have now been essentially negative for 4 days.

close

The SP:DXY ratio chart is near a support…

dxy1

And here’s my new 20 day highs and lows chart, using the R2K as my universe.

20day

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Posted by Danny on Friday, January 22, 2010 at 12:21 am 
Filed under Market Commentary · Tagged with

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Comments

One Response to “Big Bad Selloff”
  1. Hawaii Five0 says:
    January 22, 2010 at 12:15 pm

    Thanks Danny!

    In in 1.5 times the s&p here on the whole port and feeling the pain.

    Reply

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