Low Confidence Sell Day

Morning move down to 1689.50 stopped to the TICK at R2. Programs are more obsessed with floor trader pivot references now that ever.  And when you see an extended move down print a reversal pattern TO THE TICK at R2, (right at 8:00 too) you can pretty much forget about hanging on to any downside continuation biases and possibly look for short covering opportunities to get long.

After the lows were in today, it was just a slow grinder higher, and then a slow grinder lower into the close.  

If our topping thesis is valid, bounces will get sold, like they did today.

I think further looking down is on tap for tomorrow as the plethora of moving averages just beneath will be liquidity zones.   But a few days of down in a bull market is always susceptible to a snap back.

And if this piece, about record inflows last week is true, then watch out as a whole lot of laggard longs could be hitting their stops soon.

This is a very good example of sell day in a down trend.  Utilities leading, and financials at the bottom of the heap.