Today on the Marketbeat - What goes down, Must go......Up??

Closing #'s:

DOW: -369 to 9,955

S&P: -43 to 1,056

NASDAQ: -78 to 1,869

RUS2K: -23 to 596

TSX/S&P: -669 10,133

VIX: +6.54 to 51.68

Internals:

Core Sector List: 16/0 Bears

NYSE

Breath: 7.6/1 Negative

TRIN: 0.8

A/D Line: -2700

Nasdaq

Breath: 8.5/1 Negative

TRIN: 1.6

A/D Line: -2100

Today on the Marketbeat - What goes down, must come ...Up?

Another day in the financial markets, another moment in history. I've actually seen more history being made in the last couple of months than I did in all of High School. With so much emotion tied into every tick of the market its gotten to a point where when the Dow closes -360 on the day its not entirely bad, but that is only when you look at the intraday action. Today the market gaped down 200 pts on the Dow, and quickly continued its drop down, blowing past S1 on the open, then S2 like it wasn't there....and then even S3 in the afternoon session. And just as everyone is saying the sky is falling, even Cramer. The market turns on a dime and rips up 500 pts like its no bodies business. If your looking for a physical example of market volatility, then look no further...this type of swing catches both sides with their tails between their legs. Interestingly enough, upon glancing at a 20yr chart of the $SPX index, with the use of some simple trend lines, you can see how today's action pegs the trend line of the lows from 02-03, so on a technical basis this was a justified move (the late day rally).

Chart of Internals: (Click to enlarge)

Internally it was much of the same as the levels reflected the action. The Breaths were at 27/1 at some points today but with the help of the rally climbed back up to a slightly respectable 8 to 1 ratio for the bears. the A/D lines came in at -2700 ticks and -2100 ticks for the NYSE & NASDAQ respectively. And the trin continued its place as the indicator that just isn't the same as it more reflects the market now instead of contrarian 

Chart of 20yr $SPX (Click to enlarge):

Today I want to take a look at that long term, 20yr chart of the S&P 500. Showing this retracement in a long term perspective. Alot of the time we short term traders tend to forget to take a step back and look at the Big Picture. This is what keeps my head on straight. Looking at this chart we can see how today's wild action pegged the trend line coming from the lows of 02-03. Could this of been one of the catalysts that made the market rip up near the end of the day? who knows. 

Unusual Options: 

SWY / ODP / XLV / PII / CA / GSK / CSC / GIS

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