For the second day in a row the market could not manage to put together a decent bounce, despite a high level of negativity and some oversold technical conditions. Yes the employment report was quite poor, but the ADP report earlier in the week indicated this was coming and expectations were already quite low.
It was particularly interesting today that a weaker dollar, talk about a Greek bailout and even hints that QE2 may not be wrapped up right away all failed to entice buyers. We had a little dip-buying action on the gap down open, but we lost that weak momentum pretty quickly.
When the bounce action is as weak as it has been these last couple days, the only thing we can conclude is that the character of the market has shifted and that market players are more concerned about finding exits than they are about finding bargains. That is what a downtrend is all about and we definitely are in one right now.
Protect your capital....