Was today just another day where managers can't get that bearish taste out of their mouth? Into the end of the quarter, after the best Q1 since 1998, managers needed to make their books look not so foolish as most have under-performed this year.
Now that Q1 is in the books, funds need (read: want) to dump those excess positions they didn't really want in the first place. The market even made it easy for them with an immediate pop to sell into! How perfect for the bears right now.
Maybe that was all today's action was. Maybe it isn't. After all, divergences have been building for quite some time. Perhaps their selling will create a snowball effect and the sell-off will be a self fulfilling prophecy.
With individual investor sentiment so skittish, I can't help but think the April Fools joke will again be played on the bears.
Here are a couple of key charts i'm watching:
TLT is still stuck right under some major resistance. It isn't shying away, but if today was a back breaker for the bulls, wouldn't we expect this to break out?
UPDATE: 4/3/13 This appears to be breaking out. Score one for the bears. This occured with all sorts of other bearish activity in the markets today.
This next chart is a 10 day moving average of the Arm's index. It essentially measures buying/selling force in the markets. We are approaching the upper boundary (an oversold level) rather quickly.
Any questions about what you see here? Leave a comment. Or you can follow on twitter @atmcharting or stocktwits @a_jackson and give a shout there.
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