Major averages are trading under their 200-day moving averages and cannot seem to muster a bounce. The market's downtrend remains firmly in place although short-sellers should be cognizant of the June/July lows as the market could potentialy stage a normal reaction rally after undercutting these levels, and we are approaching those levels currently.
Housing stocks continue to come undone as the housing recovery seems tenuous at best. Stocks that have sold off hard through their 50-day moving averages after sporting strong uptrends include LL, DHI, ELLI, FBHS, PHM, OCN, MDC. and RYL. If housing is not recovering as well as once thought, this begs the questions as to whether other sectors of the economy are actually recovering or have the economic reports leading up to the election been doctored?
Apple (AAPL) continued lower on higher volume as it tested the 522.18 low in is prior base. We still await some sort of reaction bounce from AAPL, but is continued weakness is quite interesting to see and speaks to the overall weakness of the market. Cash remains king!
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