Nasty Reversal

The indexes did in fact put in negative LRODs (large-range outside day) today. The fact that volume picked up also made it a distribution day. And breadth was pretty negative. So the action was bearish, at least in the short-term. One of the few siliver linings on the day was the fact that put/call ratios did pick up into the close.

The upside reversal in oil late in the day combined with rising bond yields seemed to overwhelm the equity markets in the afternoon. The market has shown little memory from day to day, so it remains to be seen if this will develop into a more meaningful correction, or if it is simply a quick trip lower that will again be bought by the dip buyers.