Not What The Doctor Ordered

I was hoping for just a little backing and filling, but not a wholesale selloff that took us back down to the lows of last Thursday.

The SPX declined -1.3%, while the COMP, mid-caps, and small-caps all fell movre than 2%. Brokers were hit especially hard after LEH reported earnings and said how tough May was, and that if the Fed goes too far, it could get tougher.

Breadth was terrible today, with over 91% of the volume to the downside on the COMP. Of course, this is often what happens at market bottoms. The VIX/VXN and TRIN continued to spike higher, showing ever rising fear levels.

Volume rose from Friday's session, making for a distribution day. That pretty much kills Thursday's rally attempt, unless today's weakness is quickly offset. There has been a lot of technical damange done to the markets, which could take some time to heal. But I still expect to see some strong, oversold bounces soon.

long LEH