Breadth charts remain bearish with a composite score of –15 out of –18. Downside potential is still there as the market searches for good support.
The markets closed on the lows of the day.. You can see the slide from the double top around 1106 made last Thursday and the close on our support line of 1050. Next level of support down is 1040 then 1030 in gross terms. A good intermediate goal for the bulls would be a rally up above 1072, that would let everyone know there are buyers in the market. For the bears just keep fading the rallies and selling in the afternoon.
On the upside today look for resistance at 1060 than 1066. First level of support is 1050. If we fade again today around noon to 2pm then they old game is up.. We are due for a bounce but my dailies are predicting one more weak day before turning around.
