Market Monitor

• After a gap lower at the open, things only got worse. But at the end of the day there were only 139 stocks down 4% or more.
  
• Putting the current correction in perspective is important, this correction is coming after 4 months of rally and after some indexes made new high. So this is normal and expected.
• Sentiments are getting in to negative territory plus there is enough capital on the sidelines, so expect a sustainable bounce in few days. The market is unlikely to turn down without a fight. Plus leading stocks continue to hold up well. None of the major rally leaders have been dented by this correction so far.
  
• If we see another 200 plus down day then one would be worried. Till then this is normal correction in the market.
• The McClellan Summation Index is reaching levels where bounce is a strong possibility in few days.