Today on the Marketbeat: Another day, another drop, Another cut?

Closing #'s

DOW: -508 to 9,447

S&P: -60 to 996

NASDAQ: -108 to 1,754 

RUS2K: -36 to 558

VIX: +2.04 to 54.19

INTERNALS

Core Sector List: 16/0 - banking, oil down 8%

NYSE

A/D: -2400

Breath: 22/1 Neg

Trin: 3.13

NASDAQ

A/D: -1860

Breath: 30/1 Neg

Trin: 7.02

Today on the Marketbeat: Another day another drop. 

After a volatile trading day Monday, the market was looking to have some strength in the early trading sessions, building off the buying of yesterdays close. However, the market moved up for the first bar in the morning then quickly tests the Pivot point, there wasn't a bevy of price action today as prices stuck to the PP and S1 for most of the day, only breaks S1 in the last 15 minutes of the day. Gold was up on the day as everything else was in the red, as it continues to be a short term traders market. 

Big Ben Bernake spoke today, which seemed to hint at another rate cut (.75 base points), followed by Bush speaking, which brought on a brief spark of buying, which was quickly faded short

Chart of Internals + ES / YM (CLICK TO ENLARGE):

Under the hood, the guiding light to risk management today was the breaths and A/D lines. They followed the market action beautifully as we moved lower. The trin has reclaimed its usefulness (for how long) as it trended higher along wit the markets downward slope. The tick also spent most of the day in negative levels. As the day went on the internals worsened as the S&P crossed under the 1000 mark, breath readings came in at 22/1 & 30/1 respectively on the NYSE and NASDAQ.

Overall idea from today, trade small, and manage risk !!

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