August 25, 2015 | Another Wild Ride; Stocks Collapse Into Close; Dip Buyers Hammered; Overhead Supply

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

When I went to bed last night (actually something like 3:30 AM this morning), Dow Futures were up something like 366 points, S&P futures were up about 50 points or so, and Nasdaq futures were up on the order of 100 points.Given only 6 stocks on the S&P rose yesterday, one might reasonably have expected a rebound for at least a day. Let’s take a look at what actually happened in the cash markets today.
S&P 500 10-Minute Chart
Dow 10-Minute Chart
Russell 2000 10-Minute Chart
Overhead Supply
Dip buyers were had another rough go of it today.
That stocks could not muster even a one day rally in spite of extremely oversold conditions could be an ominous sign.
Despite significant gaps up, with further momentum until noon, the indices all closed in the red. This indicates a huge amount of overhead supply.
Mike “Mish” Shedlock
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Mike 'Mish' Shedlock August 25th, 2015
Posted In: Mish Talk
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