Monday, May 24, 2010

Financial And Oil Stocks Lead The Market Lower

The stock market was relatively unchanged for most of the morning until 1:00 when we saw weakness emerge in the oil and financial stocks. At 1:00 the S&P broke high and was testing yesterday's high but oil, banks and brokerage stocks were already trending lower. In fact if you look at the above 5 min chart you will see that the oil stocks were basically on their lows while the S&P was trying to break high in the afternoon.  As a result of such weakness, the entire stock market trended lower into the close.

I'm still waiting patiently for a decent bounce in the market to short.  I do see some pockets of strength in some of the tech stocks like Apple Inc, (APPL), SanDisk Corp. (SNDK), Google Inc (GOOG), (SINA) etc. but currently there is far more weakness than strength.  Lets see what happens tomorrow.

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