Shake, Rattle, and Roll Over...

Yesterday saw a decent recovery from late morning into the close in the S&P and major ETFs. Volume wasnt as robust as it should be on such a rally and that was the key to this mornings continuation higher - or failure. And the latter is prevailing.

It is clear the market is in an intermediate downtrend where rallies should be sold. Whether you look at , SPY, IWM, ETF mentioned recently such as GDX oe XLE, or stocks such as CAT and JPM. RALLIES SHOULD BE SOLD!

Looking at my short term indicators I still see further downside. Yes, there is always the possibility of a snap back rally with some unforeseen catalyst. But technically there is more work to be done on the downside.