S&P 500 2744.28 -35.32.
The stock market sold off sharply on heavy downside volume, as measured buy our buying/selling index and our capitulation index. As mentionned yesterday, the market may well have reached the upper boundary of a potential trading range the market may trade in over the next few weeks. Only 641 stocks advanced on the NYSE compared to 2310 that settled down. The market has to work out the overbought situation the recent rally induced before reassessing the global situation. In this environment, up and down moves are swift and violent and, as mentionned in one of our previous comments, are going to frustrate bulls and bears along the way.