As noted in this post last night, the path of least resistance was down and it played itself out perfectly from just prior to the opening bell. All markets and all sectors (except coal +1.2%) cratered on high volume today. Leading the fall were small caps and technology. Note that the Nasdaq P&F chart signaled a triple bottom breakdown today with a preliminary target of 2200. With a few more sessions like this one, we'll reach that target in no time at all. What a difference a day makes, yesterday's McClellan Oscillator was neutral and now we are in the significantly oversold zone. Very few stocks were spared (weak and strong), my screens are covered in red. Last night I highlighted the SOX's precarious position. It's obvious from today's session that the bears are taking over. However, at these oversold levels, we could stabilize in the short-term.
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