Three distribution days in a row for the S&P 500 and this Bear train’s a rolling.
We’re looking for the major indexes to take more attempts at regaining their 50-day averages. If we don’t see sell volume dry up we’ll be eying short candidates. Always best to be cautious with shorts.
We’ll be waiting for homebuilder Lennar (LEN)‘s earnings announcement tomorrow. It was KBH’s poor outlook that threw a wrench into the sector yesterday. LEN’s results will give us a better read on whether of not KBH’s problems with soft market spots is an industry wide problem. This blogger is more interested in price action than words. We alway look at “what is” before caring about “what should be.” So don’t care about the news as much as the reaction.