Stocks drop

Stocks dropped today in a volatile session. After an initial drop, the indexes tried to mount a rebound, and it looked like once again that area of price rejection yesterday would hold and again reject the lower prices. But then another round of selling hit the markets and the S&P closed down sharply, invalidating that price rejection tail you can see on the chart from yesterday. Momentum on the S&P turned back to the downside and the overall trend remains sharply down. The Nasdaq fared a bit better, as it is still holding above the low of eight days ago. It first tried to take out the low of yesterday, where there was a long price rejection tail, and then proceeded to move to the plus side. It looked like that price rejection from yesterday was again rejected today, which would have looked like a further rebound would be in the works. But then when selling hit the S&P, the Nasdaq got dragged back down to close slightly lower than the open. Momentum is still slightly to the upside with the trend pointing lower, but not as negative as the S&P/Dow. Gold was up for the day, slightly over the $800 level, and about where it was in the after-hours sessions yesterday. Oil tried overnight to take out the magic $100 level, but turned a bit lower. The country ETFs were down today, with the Asian ETFs leading the way, especially the FXI with a little over a 7% loss for the day.
I have a couple of new articles posted. One on bubbles and the other on the Baltic Dry Index.