'Buy the Dip' Action in the Stock Market Is Failing

We have a good illustration this morning of how the "buy the dip" pattern is starting to change. The gap down in the Nasdaq this morning was a classic setup for the "buy the dip" crowd, but they are now inclined to sell into the bounce rather than ride it for me. This is what happened yesterday and there are signs of the bounce fizzling out again today.

Another issue is that the senior indices are not benefiting from rotation any longer. The S&P 500 ETF (SPY) and the DJIA ETF (DIA) are down for a second day without any sign of a bounce so far. There is still underlying support, but it is weak and if there isn't some upside soon, I expect to see the bears press....146 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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