Today on the Marketbeat: Down comes the rain and washed the SPYder out

Market #'s @ Closing Bell:

S&P: -24
DOW: -184
NASDAQ: -44
Rus2K: -21
TSX/S&P: -329
$VIX: +1.92


Internals:

Core Sector List: 14/2

- NYSE -
BREADTH: 10/1
AD LINE: -2380

- NASDAQ -
BREADTH: 17/1
AD LINE: -2000

Today on the Marketbeat: Down comes the rain and washed the SPYder out

Today was another day reminiscent of Monday's trading action, with a couple of key differences. While both down days this week have come with a gap down in the early trading hours, the way the market reacted to the gaps was a bit different. Monday was a bearish day but with some bullish side chatter. Today on the other hand was all Bears, which isn't to say that we should be looking to short the market entirely, in fact this pullback is healthy for the market as it has run up with almost a Redbull type of fever. A 30% retracement off the highs, which should take us down to about 85 on the SPY would be something that is 1) expected when facing a climb out of a recessionary market and 2) good for the overall bull market. Add to that the fact that May-June are more often than not very bearish months, where many investors use the motto - Sell in May and go away.

Today's internals were very bearish, with the Breadth being the most closing the day at its lows @ 10/1 on the NYSE and 17/1 on the NASDAQ. The AD Lines dropped into the red on the opening bell and never looked back closing the day below 2000 ticks under. While the Core sector list was a sea of red, closing @ 14/2 to the bears.

The rest of the week is expected to continue the volatility, with some big names releasing earnings combined with economic reports and Option Expiry week. Plan your trade, and trade your plan...and Happy trading.