The Bears Ruin The Picnic

Yesterday;s move back up over 1040, and today's bounce at the open, gave the bulls some encouragement that we we again successfully testing key support, and indeed it held all day, right up unil the last hour, when all hell broke loose. It was straight down for the next 60 minutes, a classic grind em up bear move.. We have now achieved a new low on the SPX, and the line at 1040 was the "bull market-bear market" line, so we are now unofficially in bear market territory.

The second critical index to cross that line was the Nasdaq, now also in a bear market. The conventional wisdom is that the "death cross" of the 50dma and 200dma, which will occur with the exponential averages first, is a "sell signal". Man, if you haven't sold by now, it's way too late.

the Dow industrials look like they are finding support but a closer inspection shows that it, too, has broken it's low. I don't know where support here is, but the fibonacci's say 9493. That's a ways down from here, but we certainly have the momentum to get there.

The Russell 2000 has not yet entered thee dreaded bear zone, but it is very close, and has just that bare sliver of support at 607. I have a downside target here of 580.

While the bulls were waiting for the bounce from yesterday's drop, the bears walked in and made off with the picnic baskets. The market may be pricing in a horrible NFP report Friday, and after today's dreadful ADP report, it will probably get it. Which may be the time to start buying.

I will have the new highs update shortly.