LRODs Galore

Last Thursday, the COMP put in a large-range outside day (LROD) to the upside, and the SPX came within a point of doing same. Today, the SPX stages a negative reversal, resulting in another LROD, except this time to the downside. Volume ran below Friday's levels, so it does not qualify as a distribution day.

That makes for a lot of volatility. The COMP broke below its 50-day also. The catalyst for today's late day selloff was comments that Bernanke said that the markets misinterpreted his statements last week, and that it would be a mistake to label him "dovish".

Breadth was mixed, with the A/D line negative on both exchanges, while the Hi/Lo index expanded on both exchanges. Measures of investor anxiety (put/call, VXO/VXN) rose throughout the day, but remain at just average levels.

The brokers continued to be sold today, but profit taking in the group does not alarm me, given the run they had. Most other sectors were also down today, with the exception of energy and materials, and some retail.