The Indecision that the market displayed today sends us a message that indeed we are in the midst of a new leg down in an ongoing bear market, but also that on a very short term basis we may be nearing a short term low.
I have targets in the 1345 area basis the S&P 500 cash index that should present some type of support for the market. This however should prove to be nothing more than a point of a small counter trend rally before the decline pushes lower once again.
The 1345 area is a good target for those who have been holding SPY put options to exit their positions and await a point to sell any strength once again.
The NASDAQ has finally broken down with a penetration of its lower channel.
The OTC market had been one of the slight glimmers of hope that in fact the market could rebound in a more aggressive manner, but all this has been dashed with the breaking of the lower trend channel.
As stated above, we may be nearing a very short term low after we see one more push lower in stock prices. Use this potential strength however to sell short, hedge or buy SPY put options as sharply lower prices seem to be in the cards over the intermediate term.