The S&P 500 and Russell 2000 are very close to joining the Dow Industrials and Transports in negative territory for the year. The S&P 500, which has fallen 5 straight days for the first time since January, is now back below its 200DMA, having swung from euphoric "Greece is fixed" exuberant record highs in just a week of rising volume. The Dow is the furthest below its 200DMA since October's Jim Bullard-rescued dump. Treasury yields are plunging.
Notably the S&P 500 was unable to make higher highs after testing the 200DMA for the first time since the rally began in 2009...
And The Dow is near 6-month lows...
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The selling pressure pushed the S&P 500 near red year-to-date...
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But the machines are holding the 200DMA line for all they are worth...
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Although the bounce was clearly machine-driven to hit VWAP perfectly...
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While we do not want to ring the bell - this type of ramp to VWAP suggests heavy selling pressure overhead from institutions (as machines make way for those orders).
Charts: Bloomberg
