The Dow dropped 1.9%, the S&P 500 2.3%, the Nasdaq 2% and the NYSE composite 2.8%. What was more distinct was the volume. Actually yesterday marked a distribution day, so the follow-through on today is something to be concerned about. So, make sure you marke yesterday’s highs as a pivot point. For simplicity, let’s use 11,200. It’s odd, once again, the the Dow would close just a few points under 11k. I’m sure there’s much more room for the market to drop. So don’t rush in and buy this dip. What makes this a “retro-reversal” is that if you noticed, the market attempted to reverse back and make a rally in second half of the day, but then volume came pouring in on the sell side igniting an even worse close. It’s usually difficult to gauge an intraday chart to dictate a longer term trend, but these types of failed rallies brings us back to bearish tapes, which seems a little retro. Anyway, the point is, watch out for these distribution days, they are the biggest signs of long term trend reversals.
Stocks for day trading tomorrow:
– Panera Bread Company [[PNRA]]
– Buffalo Wild Wings [[bwld]]
– Green Mountain Coffee Roasters Inc. [[gmcr]] …I’m looking forward to seeing these puts explode.
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Your blog is eating my comments.
Good post.