THE CLOSE

Markets have closed at/near their lows and the best predictor of the day turned out to be the market internals which never flinched as the markets tried to rally in the early afternoon.

Generally the NAZ COMP doesn't go lower than 40 points in a day and the SPX rarely goes under 15 and we have closed near those targets.

There are ZERO sectors in the green on my list with the best of the bad being banks, consumers, big caps, and metals. The worst of the worst are semis, small caps, oils, airlines and biotechs.

Market internals closed with 3,500 more losers than winners with five DJIA stocks higher and twenty five lower.

The question on most traders minds is whether this dip gets bought or if the remaining profits should be taken since we are in September and everyone knows the trading almanac for September.

My guess is we go lower and today is probably the beginning of a new downtrend. If one takes a quick look at the charts, we are back to where we were a few weeks ago and my downside target on the charts remains QQQQ 37.75 or NDX 1535(see it), which is the gap that remains to be filled from August 16.