After the crappy-ass action on Monday, the dip-buyers made a minor attempt this morning but were unable to generate any buying enthusiasm for any length of time. It seemed like once we took out the Monday lows, for all you technicians out there, selling picked up and even a tepid late bounce attempt was aggressively turned back. Breadth was better than 2 to 1 negative and volume picked up for the second day in row.
Things to watch? One might be to gauge the vigor of dip buying. Another would be to monitor any pockets of aggressive momentum....Both don't look so hot right at the moment. Obviously the dip-buyers had some chances to do what they have done so well since March but didn't execute. The small-cap momentum was nonexistent today and actually was working in reverse in many cases.
I'm looking for a bounce attempt first, but I'm not sure if it'll hold. How many out there are looking to sell and/or short into strength? Is now the time to cut some longs? It's certainly possible the dip-buyers could bail us out once again, but it may be more difficult this time 'round.