Yesterdays break-out move was not confirmed today. The S&P500 reversed rather convincingly, and an attempt to rally the Nasdaq failed. Intel, which was up nearly 1.5% mid-day, closed on the dark side. Yahoo set a new low for its month-long slide. Research in Motion tried to hold gains until early afternoon, then slid quickly to a final loss of nearly 2%. Even housing stocks made an attempt at a new breakout today, then failed and went dark. Technically, the homeys are looking very weak, and its looking more like their 6-week monster rally from mid-May may have been a blow-off phase of their mania, as I theorized on their big reversal day two Fridays ago.
So with $60 oil looming overhead, and earnings season sneaking up, the bulls have a big trial upon them. I would be very surprised to see them come through. Hopefully not too many people share my sentiment or we may all very well be dismally surprised.
Disclosure: Short YHOO, INTC, RIMM. Long INTC, YHOO Puts