Today on the Marketbeat: NEW 10 Year Lows on the S&P & DOW

Market #'s @ Closing Bell:

DOW: -444

S&P: -54

NASDAQ: -69

RUS2K: -22

TSX/S&P: -683

VIX: +6.52 to 80

Internals:

Core Sector List: 16/0 tot he Bears

NYSE

Breadth: 15/1 Neg

AD LINE: -2600

NASDAQ

Breadth: 12/1 Neg

AD LINE: -2100

Today on the Marketbeat: New more lows on the Spooze

The biggest piece of news is clearly today's test, and breakdown of the 02-03 lows on the S&P (DOW), this is a very key piece of information as when the market sold off today, it acted as those levels weren't even there. 

Last post I discussed the use of the trin when it closes above 2, or below 0.2 on the day. When you get a reading at either extreme the idea is that the next day the market could see a reversal of set extreme reading. Yesterday we got a reading of 3, well over a close above 2 so I mentioned that the market could see a quick rally on the day. Now what I wanna focus on today is the half day rally we saw before the sellers reloaded and shorted the market to new lows on the DOW and S&P yet again. We opened down today then quickly snapped back rallying into the daily pivot line, almost pegging it, then reversing gears to the downside in the afternoon. from the initial lows, there were defiantly some good opportunities to catch some intra day swings, but with the rally being squashed in the afternoon into another sell off, do these rules of thumb still work? The quick answer is that in a market like this, whatever strategy you use, you have to keep in mind that it can switch gears on a dime and rip either way, so you have to trade small and be quick to take profits. 

Under the hood the internals were once again the superheros for active traders. Giving us the slightest of warnings on sentiment swings and helping us decipher when to take profits if we rode that rally. The trin posted a +1125 reading at 12:45, simultaneously with the price action making its second consecutive topping tail before it dropped. The Breadth showed some bullish intent early on but at 12:45 it also turned around pointing to a bearish afternoon. Finally the AD LINES tacked on some more losses with the NYSE closing down 2600 ticks and the NASDAQ down 2100 ticks. 

Overall this has been another week to the bears. The 03 lows have been tested and seemingly broken. So what does this spell for the market? only time will tell, till Sunday - Plan your trades, and trade your plans...