Breadth has improved just a bit from the extremely poor levels this morning, but it is still around 5-to-1 negative, and all major sectors are in the red. We just hit a new low for the day a few minutes ago and have a slight bounce under way, but there definitely is a lack of dip-buying interest today.
I see some minor strength in a few solar energy stocks, and the fertilizer group, which has been a laggard, is bouncing a bit, but there are no positive themes and very few pockets of positive action today.
As far as how things will play out this afternoon, it will be slot-machine action. Volume will be thin and that should embolden the bulls for at least one good bounce attempt, but I'm not sure I'd bet on it to hold very well.
Technically the S&P 500 is doing some damage today with the breach of the 50-day simple moving average around 909, but we are still above key support at the June lows and the 200-day simple moving average, which are around 888. That is the point when the momentum really shifts to the downside, but for the moment we are just trading back to the bottom of the recent range.
P.S. Will you be there when Cramer makes his next move?
Strong brands and companies with vast market exposure can help bolster your portfolio. Jim was able to lock in a 64% gain by buying Ingersoll-Rand at $13 and selling at $22.50. Action Alerts PLUS members were the first to see these moves. Were you among them? Get Free Access Today!
Rev Shark Blog Ugly -- Just Ugly 7/2/2009 10:07 AM EDT The action today may prompt bulls to begin their holidays a bit early.
Rev Shark Blog Your Move, Bears 7/1/2009 4:40 PM EDT The end-of-quarter market boosts are over, and we'll see if sellers can press their advantage.
Rev Shark Blog Such a Skittish Market 7/2/2009 8:29 AM EDT The jobs data could whip us around in this thin-volume environment.
James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and he also operates sharkinvesting.com, an interactive online community that serves and educates active investors. DePorre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here.
RSS FEEDS
PODCASTS
