Look Out Below!

January 28, 2011 12:01pm by Barry Ritholtz

Today seems to be the first day the major indices have fallen, and are unable to muster a rally.

It is still early — its only noon EST as I type this — but I don’t get a feel for the market’s ability to come charging back. That’s no surprise, given the over-extended over bought condition we find ourselves in.

Note that the Nasdaq (QQQQ) and the Russell 2000 (IWM) are leading tot he downside.

Hence, the news flow may amount to little more than an opportunity to pullback, consolidate, and work off some excesses of recent weeks. We will have a better sense as the correction unfolds if this is a minor (8-12%) pullback, something less, or something more.

Stay tuned . . .

Help! We’ve fallen and we can’t get up!

click for updated chart

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