I got 3 calls today from clients, all asking the same thing: "Why is the market rolling over?"
To be blunt, I have no idea. I normally ignore most intra-day moves, as they are primarily just noise — except for big intra-day reversals (upside or downside). This one seems even more interesting, if only because its the first day back after the Summer.
Oil is still down significantly — about $7 as I write this — so its not that. Perhaps hopes for a Lehman Brothers (LEH) Korean rescue have faded.
No matter. The Dow has given up
more than half most of its gains for the dat, the SPOX and nasdaq are in the Red, Semis went from unchanged to negative, and the Russell 2000 — which made its high
of the day at 9:45 — has been falling ever since. Overall breadth is mediocre for a 100+ gainer.
Peter Boockvar notes that "Strength
in the US Treasury market, a big reversal from early morning selling, is worth
Any ideas as to why the selloff? I’m all ears . . .
via Big Charts