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That was not the right way to follow up a reversal day (yesterday). To open with strength and close at the low of the day, completely erasing yesterday's reversal (which was in itself bullish) - not a good thing. That said, as I've been saying We Need Fear, and perhaps the first hints of it are arriving (would coal stocks losing 1/5th of their value in 1 session be a good indicator?)
So we're back here at S&P 1260 where we miraculously rallied off yesterday (out of the blue) - of course the market being the wicked thing she is - I was positioned much better for a fall through that level yesterday before the out of the blue rally. So she is being at her most wicked self at this point with reversals left and right. I am reading a lot of frustrated investors/traders on multiple sites so if you are feeling that way, you are not alone. I haven't seen so many headfakes since the Barry Sanders years.
Anyhow, back to yesterday's comments [Could be Panic Time] - if we break that S&P 1260 level, unfortunately the most logical path is a move down to 1225 which would be levels last seen in 2006. The last move down in a selloff is usually the most traumatic so in case we go there be prepared. On the positive side the generals are finally being shot, group by group. Even Ultrashort Oil - Gas (DUG) was working there in the last hour of the day. That is the last group that needs to fall.

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