A decline like this is something many, including us, has felt likely if only in our bones but for other reasons as well. Aside from obvious issues articulated by many already (no growth in jobs, high PEs, stock rally ahead of itself and so forth) we just didn't like the pattern of high volume (distribution) on down days and extraordinarily low volume on rallies. We've been pointing this out ad nausea.

But, that said, we've seen this pattern of selling repeatedly since May—heavy selling followed by light volume dip buying. For many bulls, defending the 50-day moving average is important. SPY for one, fell below that level today.

Below is the summary often done for us by subscriber and now and again contributor David Hurwitz. He eliminates Berkshire stock activity to compute his data since it presents, in his opinion, a more accurate picture. You can see we almost had from all market views a 10/90 negative day for the NYSE.





Below is the data from the WSJ including the NASDAQ/AMEX.














































































































































Now we await dip buyers and wonder how low the McClellan Oscillator can go before we reverse sharply. End of month tape painters are missing so far. This just won't do! Bullish portfolio managers, and certainly the always bullish financial media, must find a negative month unacceptable.

Evidently a dollar rally is not a welcome event for bulls. The bottom line is Bucky hasn't rallied that much yet. It's just an oversold rally as best we can tell. But, we'll see how it goes.

There's not much excitement in after hours trading unless you're a bear on First Solar.



Tomorrow GDP and Jobless Claims are upon us. And, guess what? Turbo Tim will be speaking and trying to spin things as best he can.