July 15th 2010
Resistance Holds As Stocks Sell Off
If you read my previous post from the other day, you would know that the stock market was at key resistance while also being in an overbought condition. When we have this kind of situation, the market usually (but not always) sells off and that is exactly what we saw happen today.
Stock indices were down sharply today with financial stocks getting hit the hardest. Volume increased today which is an indication of aggressive selling. The most obvious downside target would be a re-test of this month’s low.