UGLY

The markets were not pretty yesterday as the markets sold off all day with hardly a break. The problem is that the markets are not oversold here as MACD and Stochastics are both smack in the middle of their ranges and the Volatility indexes are hanging in right at their 10 day SMA's.

The 200 day SMA looming overhead still looks like a heck of a lot of overhead resistance and any rally to those levels will be shorted big time in my opinion.

The pivot's today, which were worthless yesterday are 124.6 on the SPY and about 110 on the DIA. Major areas of support still exists at 123.8 on SPY and 109 on DIA. I plan to sit on the sidelines as I have no great desire to get long or short these levels except maybe for a quick scalp.