Is It As Bad As It Feels?

So far the major indexes are holding above their respective 5/25 lows on mixed volume. I think in hindsight today's action may be viewed as the last shakeout of the base building process that is needed before the market can move higher. If this was really the beginning wave a 3rd of a 3rd wave down as some are proposing, I think the decline would have been far more severe today. It should have been far more severe today given the big miss on the jobs number. On the other hand if we wake up Monday morning with a huge gap down, I will be going short. I just don't think that is what we will see.

The fact is that none of the markers that we would normally see with a primary top in the market were not present in April: large percentage of stocks already off of their 52 weeks highs, divergences in breadth, expanding new lows, etc, etc. The top will come, but I still think it is not now.

Have a good weekend.