Tough day in the market for bulls–even bears. Seemed like both were playing chicken today. Looks like the bulls swerved down a cliff towards the end. Below is a chart of the total stock market index.
[edit: I purposely chose the time frame from March of 2009 through now, because that shows the current volume by price profile of this important (countertrend) rally].
The magenta represents the volume by price bars. As you can see, we are in tricky territory. We have dipped below the February 5 low. The market is literally at the edge of a precipice here. I've no predictions about which way it is going to go. It is reasonable to expect a bounce–but the news flow will need to be supportive of that.
