About that “market of stocks…”

The market did something ugly this morning. It printed new highs. Actually, its overnight futures trading had already printed new highs. Retesting the highs this morning without extending higher killed the rally”s momentum.

That”s not the ugly part.

The above describes the S&P 500. Its overnight high was retested as close as possible without actually touching it. The NDX and Dow overnight highs were significantly higher. And all have reversed into negative territory — NDX just barely.

So, all three major indexes rejecting new trend highs, and reversing into negative territory. All within the context of an upleg that recently has been extending only grudgingly.

The market loves a challenge.

This afternoon”s lows are essentially on the precipice. Falling over just a little bit further would likely fall over a lot. Otherwise, this is the pullback”s bottom. So, extending the decline through the afternoon would be bearish. But rallying to close positive (basis S&P 500) could give the rally new life.