ajtj99's Market Pulse

[Justa Werkenstiff]

Market: I said yesterday: "OEX and SPX 30 minute bbs are pinched. I think bears will have to break the averages down today hard on price and time is running out. Otherwise, it seems we are getting primed for a rally that can begin at anytime."

Averages did break down in final hour. But breakdown on SPX, my proxy, was marginal and the breakdown created oversold buys on the SPX (solid) and the DOW, OEX and WLSH. So downside there should be minimal and I have turned bullish from neutral short term on those averages.

We are close to the same status on the RUT, NAZ, NDX and SOX but they show more downside work could be done there.

Two scenarios: (1) We reverse and rally today based on the strength of the broader averages leading the way or (2) the averages that have bottomed work sideways/slight down on the weakness of the lagging averages so they can can catch up on the downside.

I can argue both scenarios for the day and both can take place during today but I slightly favor the second scenario at the close. There are many cross-currents going on here.