Big intraday reversals typically lead to follow-through because the sudden change in mood catches folks by surprise, so they jump in out of fear of being left behind.
That dynamic is not working very well this morning. A gap-up open led to steady selling pressure and breadth is slipping fast. All the FATMAN (FB, AMZN, TSLA, MSFT, GOOG, NFLX) names are negative and Nasdaq is lagging.
Once again, as the indices trade downward, oil trades lower as well, and buyers are looking to jump into precious metals. It has been an extremely strong correlation lately. The minute the indices show any sign of weakness, there is a rush into precious metals.
I do see a few interesting charts developing. Here are a few charts of interest on my watch list, but there isn't any reason to move too quickly.
Keep an eye on U.S. Oil (USO); if it takes out yesterday's lows, it is going to get ugly very fast again. Hope for the G-20 meeting may help to hold the market up, but it is looking dreary despite yesterday's big reversal.
