Not A Pretty Close

The market tried to recover around mid-day, but could not find its sea legs. The SPX trailed off in the last 2 hours and pretty much closed at its lows for the day. Volume rose again, marking another distribution day. Breadth was more benign, and was actually positive on the Nasdaq, which closed flat on the day.

I think this is part of the near-term weakness I mentioned earlier. I do expect it to run its course eventually. If you needed to lighten up, you had a chance during the first hour pop.

There were some very strong retail sales reports after the close (CTRN, ZUMZ, ARO). If that is an indication of tomorrow morning's reports, then retail stocks should have a good day. And don't forget that October payrolls comes out Friday morning.

Have a great night--