Disappointing
PPI data set the stage for a third consecutive day of selling, this time on higher volume as the S&P extended its break of the rising trend line off of the July lows. The NASDAQ is still above its trend line, but the bullish flag pattern is clearly broken and today's extension of yesterday's wide range sell off, took place on higher volume. Finally, the overbought posture has been neutralized. I would expect a bounce in the wake of 2-3 day declines, but we'll wait and see if we get anymore market moving news in
pre-market and how the oil/energy sector reacts to crude inventories at 10:35. These last two sessions have seen strength in beaten down energy/metals sectors. Laggards were led by airlines, casinos, financials, retail and semis.
Disappointing PPI data set the stage for a third consecutive day of selling, this time on higher volume as the S&P extended its break of the rising trend line off of the July lows. The NASDAQ is still above its trend line, but the bullish flag pattern is clearly broken and today's extension of yesterday's wide range sell off, took place on higher volume. Finally, the overbought posture has been neutralized. I would expect a bounce in the wake of 2-3 day declines, but we'll wait and see if we get anymore market moving news in pre-market and how the oil/energy sector reacts to crude inventories at 10:35. These last two sessions have seen strength in beaten down energy/metals sectors. Laggards were led by airlines, casinos, financials, retail and semis.
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