Thoughts on todays action.

This morning the market shook out some more longs.  The E-mini S&P futures opened just above the 150 day smooth moving average (1244.25) and we started to rally giving the bulls some hope.  That didn't last long.  Sellers came back in and then we started selling off. Once we ended up violating the 150 day smooth moving average it was off to the races making new lows for the year.

That was bearish action but the market rebounded hard off of the lows.  The S&P ended the day with a 0.5% gain and back in positive territory for the year.  The bulls are 1 for the last 8 trading days.

What was interesting to me was that once again we have a Dow Theory non-confirmation.  The Transports made new lows for the year and the Dow Industrials didn't.  The Nasdaq is also keeping its distance from their lows for the year.

What does this mean for the market?

Confusion is my answer.  We cannot get all of the major markets on one side or the other.  That just means stick to day trading and let the long term guys try and figure this mess out.  Make sure that you have the right trading plan for this kind of volatility or you could get burned trading this market.  I look forward to tomorrow it should be another exciting day.  Have a good night.

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