Some sort of a weak oversold bounce is unfolding. Volume patterns (OBV) and momentum oscillators (PMO/STO) remain firmly negative on all major indexes (DIA, SPY, IWM, QQQ). Intermarket trends remain negative. Market breadth remains bearish suggesting more downside is probable in the days ahead. Friday’s unemployment report might provide a direction for the markets.
We are still short the general market ($SPX) and long TLT, GDX and IYR. QQQ is holding up the best compared to the rest of the indexes, so it might be the one to lead once a turnaround is upon us.