Stop The Bleeding

828 NYSE new lows today!!! That tops 827 new lows on March 6, 2009 by 1.

Anyway, one of the positives today is that TBT had finally had a positive session after 8 straight down days. It had gone up almost 6% today, and it's not even anywhere close to being overbought. T-bills have been the power generator for the bears in this correction. And, I'm glad to see the return of logic and rationale. Incidentally, if you hadn't done so already, you might want to consider adding TBT.

We've had back to back closing at around 1200, which happens to be the 61.8% Fib Fan line. It seems likely that's where the demand is for now.



Finally, junk bond looks toppy (as of yesterday), but it hasn't broken down like the SPX chart above. It'd be interesting to see today's data.

Edited by TechMan, 05 August 2011 - 06:22 PM.

Finally, junk bond looks toppy (as of yesterday), but it hasn't broken down like the SPX chart above.

Interesting that you pointed this out...and it should give the bears pause (another rim shot please).

Any opinion of why the junk sector is not leading equities lower as they have in past market corrections or bear modes?

Fib

Hey Fib - was looking at the S&P downgrade news...

Junk bonds are getting hit pretty hard too this week, but they don't appear to be as bearish on the economy, or as concerned about the spread of Europe’s sovereign debt crisis, as the equity market.

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Anyway, news of the S&P downgrade came out at around 7:00pm, and here's the SPY trading in the final hour of the AH session. Priced in already?

O.K. just looked through the AH data, and there's nothing panicky at all. The volume's high, but that's consistent with the day's event. If anything, it's actually slightly neutral to bullish. I'm sure we'll hear about this downgrade all throughout this weekend, but here's looking at the chain of events that lead to today's downgrade. April 18, 2011 - Negative Outlook July 14, 2011 - On Credit Watch with 50% chance downgrade Yes, that's how long we've seen this coming and been talking about it. In any case, on both incidents, the SPX rose about 60 points from 4/18 to 4/29 and about another 40 points from 7/14 to 7/26. And, Treasury yields had actually declined afterward.

Finally, junk bond looks toppy (as of yesterday), but it hasn't broken down like the SPX chart above.

Interesting that you pointed this out...and it should give the bears pause (another rim shot please).

Any opinion of why the junk sector is not leading equities lower as they have in past market corrections or bear modes?

Fib

fib, I follow a different junk bond chart, which has been hit pretty hard. In fact, its performance since late May was a canary in the coal mine...

http://stockcharts.c...63228&r=739.png

fib, I follow a different junk bond chart, which has been hit pretty hard. In fact, its performance since late May was a canary in the coal mine...

Looks like a really good bird to follow. I really like the weakness it showed with the snapback to the 200 day SMA right before it collapsed.

Please do update the board from time to time when you see either strength or weakness as a possible future tip off.

Fib