Bears finally have a chance to break the market

By Lawrence G. McMillan

The recent pattern of a late-day rally was broken yesterday, and it may have larger ramifications.  Prices declined mostly all day yesterday, and it was especially significant that a rally that began at about 3pm was suddenly aborted and instead prices traded down and closed at the daily lows.   That selling has continued overnight, and has now accelerated after a some rather poor jobs data this morning (I realize that the media is trying to put a positive spin on this morning’s data, but the fact is that S&P futures have dropped sharply since its release).   S&P futures are down over 13 points in Globex trading, which means that $SPX will violate the 1680 support level at today’s opening.  If it closes below 1670, the bears will be in a good position to press for a much large correction.  Alternately stated, the bulls need to step to the plate now or risk seeing this correction – which has been mild to date – develop into something much more severe...

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