The market gapped lower and tumbled in short order as substantial overseas declines, amid expanding global credit crisis fears, weighed heavily. The pressure was persistent for more than an hour before prices capitulated and retraced into the lunch hour. No follow through interest was evident with the sideways action through midday giving way again during the afternoon to yet another round of new multi-year lows before late day short covering rally trimmed the slide into the close. The weakest sectors were led by oil service , airline , casino, nat gas , and steel, The limited list of winning groups included Gold.We have a lot of hammers on the daily charts and the McClellan oscillator is at -80, an extreme reading which historically results in a technical bounce. Expect volatility to remain high as former resistance will now act as support.
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