370 Points BEAT DOWN!

What everyone thought was a plunge due to weak ISM services numbers is really just full scale profit taking on technical weakness. ISM services was never a market moving economic indicator at all. This is further confirmed by a flight back to bonds as bond yields drop across the spectrum slightly. Clearly, I am not the only analyst or trader in the world who saw the 12750 level as a strong resistance level which failed to break on 4 Feb. The failure to break that resistance level is enough reason for traders to take profits off the table, ending the relieve rally. What does this mean for the near future? Certainly a test of the Jan lows and probably more lows. A good time for some well positioned put options.


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