Although the indices hardly moved today, it was a troubling day for the bulls. After the intense selling on Tuesday, we should have seen more aggressive dip-buying and/or a bigger reflexive bounce. What we had instead was a most meager dead-cat bounce. All the buyers were able to do was hold us steady. After months of squeezing the shorts just as they started to gain an edge, the dip-buyers had no juice today.
In addition to the lack of bounce, we had a sudden rampage of buying in gold stocks. You have to ponder whether a sudden rush for a tradition safe harbor is something more than just momentum traders lighting up the sector for a day or two. It is quite easy to read something dire into that action.
The good news is that volume was light and there seems to be a high level of disinterest rather than outright aversion. Things still look rather precarious but as I've been writing we have yet to do any really serious technical damage. That doesn't mean we shouldn't be cautious but I am still looking for the bulls to get a little upside move here soon, especially with important jobs numbers coming up on Friday.