The downside leadership in the DOW is not an isolated incident. The S&P 100, or OEX, is also trading below the 61.8% retrace Mar/May. That means that the largest cap stocks in the S&P are bringing the markets down, not just the DOW. If OEX does not get a close on volume above 612.33, it would signal a test of March lows in the coming weeks. Right now, it looks ready for a bounce but don't trust it below the 50% marker at 621. The June option chain also shows heavy put activity. OEX options are smart money, not usually a contrarian tool. Just another heads up.
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on Thursday, June 12, 2008 at 6/12/2008 10:09:00 PM.
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