Although it is a laid back summer Friday, today's decline may signal a significant reversal is at hand. I thought the major indices would march to new highs before any significan reversal but today's action may mean things fall a bit short of that target. The Nasdaq 100 is the only major index that made a new high. The Composite, Dow and S&P did not. That in itself is a warning sign for the market since only the higher risk speculative tech stocks were able to make new highs while the big blue chip solid names failed to do so and dipped out of the rally early perhaps.
It is a Friday so I don't want to get too excited about the action today. As always, the way the market closes will be important. Closing on the lows would be a good sign a significant reversal is in place and that the bearish side should be favored for short term players, while a sharp rally into the close getting the indices to even or in the positive would favor the bulls.
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