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.


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.