The Next Move Is Down

This wimpy market rally hit a brick wall at the 200-day MA.

PRE-OPEN MARKET COMMENTS THURSDAY - The market drop this year has been substantial and sellers are in control. We were waiting for a bounce and we got one. The height and duration of that bounce would tell us how excited buyers are. The SPY rallied above the 200-day MA this week in a very choppy fashion and that was NOT a strong showing by buyers. Much of the move took place on a big gap up Monday. Yesterday, the market fell back below the 200-day MA and the selling pressure was steady. This was a clear rejection and the table is set for a move lower.

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