THE CLOSE

The markets closed pretty ugly and at the lows of the day.

The best performing sector on the day was the Sox and about everything else closed a bit in the red. The internals did close at 1,000 to the darkside.

I bought some SPY at the close and any run up to the 130 area will be a sell sign unless I see the internals do an about face. The 2 day RSI is now back down to the 25 area and if the SPY goes lower I will buy more on the way down. I know its a better strategy than top ticking the market and getting excited on the way up and depressed on the way down.

The one thing that is beginning to bother me however, is that the charts are starting to look like the start of downtrends. That is why there are stops and the markets do not go straight down (or straight up).