Although most of my end of day indicators are confirming this downtrend with little indication of a turn around, one of my indicators related to the VIX is flashing a strong buy signal. Although I will not be acting on this signal, I would expect a bounce tomorrow and possibly Friday as well.
All in all, I am relatively pessimistic on the market at this point. My gut says we will get a decent rally over the next few days, and then next week once all players are back from vacation the market will drop hard again. I would expect a 2 – 3% bounce up, then a hard drop from there.
With all this said … a healthy news story could turn things around lickety split!
Hopefully the numbers will tell me a different story in a few days, but for now … i am sitting on the side lines and hoping, but not betting for the best.