Another Fizzled Rally Attempt

After bottoming in the first hour of trading, the market then staged a nice rally attempt. You know I prefer a market that rallies later in the day, but I was willing to give this oversold market the benefit of the doubt.

Of course, volume ran below average throughout the day. So when the late-day sellers emerged, I guess it didn't take much in the way of sell orders to knock this thin market down again.

By the close, the SPX had given up all of its earlier 8 point rally. Ditto for the Nasdaq. Small-caps underperformed again, falling -0.5% on the day. Semis were down also, but brokers did finish higher today.

Oil closed flat ($69), and the 10-year was up a touch to 5.15%. Measures of investor anxiety were mixed, with the volatility indexes lower, but the put/call ratios running again at elevated levels.

I am still looking for some follow-thru strength this week, accompanied by a pickup in volume. But I have to admit my conviction is being tested.
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