Wednesday, June 30, 2010

A Look at the Total Stock Market Index

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.


Snap23

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.