Paring short covering gains..

Today was disappointing as the market gave no hints of follow through on Friday’s action or the fact this week is very light on eco’ data front.    It simply drifted down.   One, if not, the biggest worry is signs of slowing recovery following last week’s weak data outlined here, so this was/is the market’s oppy to bounce before potentially more weak (May) data next week.   It failed miserably today to take advantage of this week’s lull.   As far as follow through, today’s session was disappointing as it was too quiet (volume) showing buyers are not ready to step in.   So many individual stocks breakdowns are not being bought today, which is a major concern.   What potentially may add to selling is when tier1’s GS, JPM start to take down estimates due to slowing growth worries.   This may cause further exodus out of some sectors, individual stocks in those groups.  Fear is this may not be priced in yet by those still heavily invested.

All in all,  Friday points to nothing but short covering and our last chart on the journal’s pages may show the Nov-Feb trendline is ‘Glass'  with low SPX 1000’s in the cards this summer becoming a very likely scenario.   Next support will be Feb. low 1044.