The market is down six days in a row and can't put together any sort of bounce -- despite being oversold. The dip buyers have totally disappeared and there doesn't seem to be any buying support.
I thought there was a good chance of a washout and reversal this morning, following the negative response to Fed Chairman Ben Bernanke's speech late Tuesday afternoon. The market had already sold off substantially, so conditions looked ripe for a final shakeout before some brave dip buyers finally made a stand. It just didn't play out that way and that is troubling.
There is a real aversion to the market and nothing seems to be enticing buyers, even for a short-term trade. There isn't any way to know with certainty when the low will be reached. And given the steadiness of the selling lately, I'm concerned that we are going to test the March lows.
There's nothing very positive other than the fact that the market continues to be oversold, but that hasn't mattered at all. The bears are obviously in control and even when we do eventually bounce, it is going to be very tough to trust it to last.
