S&P 500 2677.67 -36.16.
The stock market fell sharply for the third day in a row but selling pressure abated compared to the two previous days, as measured by our buying/selling index, our capitulation index and our buying/selling pressure index. Breadth wasn’t so awful if put in relation to the magnitude of the fall : 1172 stocks advanced on the NYSE compared to 1718 that settled down. We may expect some kind of counter rally over the next few days. Overall, our indicators are improving but we would like the ones reflecting the sentiment of market participants clearly shooting to the fear and despair attitude. There is still not enough skepticism around. The weekly sentiment survey among professional portfolio managers, published yesterday, reflects this observation. 2500 on the S&P 500 becomes our price objective for this second down leg.