Dow Jones Industrial Average: -132.86 or 1.27% at 10308.26
S&P 500 Index: -13.10 or 1.18% at 1096.08
NASDAQ Composite Index: -26.86 or 1.22% at 2180.05
NYSE Internals: 841 Advance. 2217 Decline.
US Dollar: +0.765(0.99%) at 78.100 | Crude Oil: -0.56(0.75%) at 73.82
Gold: -36.60(3.22%) at 1099.6 | VIX: +1.97(9.59%) at 22.51
Markets drop as Financial stocks fall and US Dollar rallies.
As I posted in my bullish count yesterday, I was expecting a slight pullback to 1100 for Minute wave 2 on the SPX. We did slightly fracture 1100, but held support at 1095. However, the day ended a little bit more bearish than it seems. Yes, the broad base indices were only down about 1.2%, but the market internals were pretty bearish at the open, and remained that way throughout the day. Market breadth was about 8:1 bearish. Not heavily bearish, but never the less, Down volume was much higher than up volume. A/D was nearly 3:1.
So the bullish count from yesterday is still in play. We did not violate any type of wave count. If this count is correct, then either tomorrow or Monday, we should explode to the upside.
The wave structres from yesterday's highs are really hard to count as 5 waves down. This is the main reason I am leaving the bullish count up.
For the bearish side of things. It was a victory for the bears to break 1100 and close below it. The next barrier is 1095 then 1083-1085 area. If we can get enough sellers to break us below those levels, we may pick up some momentum to the downside.
The US Dollar also continues to be surging up. This will eventually catch up with equities. We have already seen it impact the commodities, as Gold and Crude continue to get hammered along with the Financials. Gold also broke below 1100.
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