Stocks slammed again
This the second time since Thursday the SPX has visited the 50 day moving average. After bouncing off nicely and enjoying the ride based on Fridays unemployment report, basically the market went nowhere and slammed again almost touching the 50 day line. Many other stocks have also touched the 50 day or broke through it.
From the early morning open the gap was faded down and the low intensity sell off continued throughout the day. This has made the oversold market now very oversold, as indicated by McClellan Oscillator, the readings are now -300 and whenever that happens usually a bounce comes.
There were not many reasons why the market would sell off for the whole day without a bounce, and in the absence of some big negative news or event it makes a suspect case. Feds are still pummping nearly 2.8 Billion dollars a day into the system and that should keep Uncle Ben in the drivers seat for sometime and stock investors happier than before.