Looking at the very near term chart, we have some short term ceiling action at S&P 1175, and floor action near S&P 1120 (the latter is the low of three of the past four days, I am excluding the intraday lurch downward post Fed on Tuesday). That's a quite large range.
In the premarket today we were down as low as S&P 1106 but I was not watching tick by tick, so it might have been lower. Either way 1100 is a big round number on the downside to watch if this selloff continues.
What bulls do not want to see is a lot of sideways action as we work off the oversold condition - that is bearish. Just as consolidating sideways after a big move up, is bullish.
At this point the indexes are just too random (read: difficult) for the near term - if you're playing, go find the leaders like Apple, Baidu, Mastercard, and such. I'm looking for things over the 50 day moving average - here is a list of well traded names over $300M which still are over the 50 day simple.
Great examples of strength here...
No positions
