4 Reasons To Remain Bearish

1. SOX is forming a bearish head and shoulders. I’m a big fan of technology leading market rallies and it can never be good when the semi’s are this weak.
2. Financials look like they are on their way to the 2009 lows, after being rejected at the 38.2% fib.
3. The Dollar looks like it’s consolidating before making another run. Lately a rising dollar has been bad for the general markets.
4. Where’s the fear? The VIX has basically been tracking it’s 10 day moving average and just today it closed down nearly 6% below it. I’d like to see this get 12-15% above it’s 10 day ma, which would signal rising fear. We haven’t had that one big flush out to signify any sort of market bottom.

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