Market Internals 2011-06-12
Since last update, there were 2 attempts of 1% bounce. Both failed to get any legs.
From both cases, the melt down mode were triggered leading to more selloff.
5% drop target was 1300 to slightly below – tagged, bounced and failed.
8% drop target is 1260 to slightly below – tagged and not bounced off that yet.
Based on the development on the breadth chart (on front page), 3-Day Advance Issues is developing a divergence bottom.
If Monday produces a bounce, especially from a gap down, it is very likely to have legs this time.