Profit Taking Day...

Investors took profit today bringing the Dow down 81.8 points, ending its 3 days run due to dismal numbers on the auto sales front. Such numbers bring back fears of major auto makers collapsing which will certainly impact the economy in terms of unemployment rate and GDP. Under such condition, nobody wants to be the hero.

On the technical front, the Dow is once again in short term overbought condition but has yet to break out of its current short term and intermediate term neutral trend. That makes it a lot less possible for the Dow to make a significant and sustainable bullish breakout this week. On the bright side, long term bond traders seem to be coming back into equities as long term bond yields rose significantly today.