Yes that's the mark I'd give the market after yesterday's session. The rally failed miserably after just one day. It kinda tells you what kind of mood the market is in. Under the hood we had cumulative ticks finish at -70,000, A/D lines both at very bearish levels (-1700 on the NYSE and -1600 on the Nas) and breadth on the NYSE was 10% positive while on the Nas it was not much better coming in at 17% positive. The only saving grace was that volume was very light but that's probably because it was a banking holiday yesterday in the U.S.
That leaves us in a very precarious position as the ES is now just a mere 4 points or about 0.5% from taking out last week's lows. You can bet that there are a lot of stops placed just below this level, so any trading below that and we will likely test 1010 again. At this point in time, I'd be wary of placing any new trades and wait for the market to make it's move first. I'm looking to adjust my OEX BWB just in case we roll over hard here.
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