Negative Reversal

The market staged a fairly nasty reversal today, accompanied by rising volume. The COMP rose to a new high early, then reversed to close below Friday's low, marking another outside day.

Breadth was negative on both exchanges, with decliners outpacing advancers. But the Hi/Lo index expanded for both the NYSE and Nasdaq. Go figure. Biotechs were notably weak today, as well as most retailers. Most other sectors were mixed. The small-cap index (IWM) also reversed lower today. Since this has been the leading sector, it could imply that more of a correction is in order.

Of course, every small dip this year has simply been a bear trap and immediately led to a rebound in the markets. But often, as soon as a trend like that becomes evident, it is ready to reverse itself.

Oil finished around $66.50, and the 10-yr. yield closed off its high levels around 4.87%.


short IWM