NO BUYERS

Stocks fell hard again today on fears that the European financial crisis will slow down global recovery. I still think there is more falling to come, but we are extremely oversold right now. This means that we could get a small bounce soon. We are only 15 points away from the May 6th "crash low" or "glitch low" for those of you that still don't believe that was a real move. That is where we could get a bounce....about the 1055 area on the S&P 500. If that doesn't hold, the next support area would be around 1044 which is the 2/5/10 low. Ultimately I think that the S&P 500 will get below 1000, but we could get a bounce before getting there. Keep in mind that the buying that takes place in this environment is usually from short sellers that are closing out their profitable positions...not from buyers that believe the stocks will start trending back up. I'll repeat what I said on Tuesday, this is not a good area to enter into new trades. If you still have existing trades, start taking profits (if you haven't already done so). Tomorrow is May option expiration. I've said this many times, but weird things can happen on option expiration...things that don't have anything to do with the expected future movement of the stock. Expiration Friday's are usually a good day to play a round of golf and stay out of the market...unless you are closing out some spreads. Have a good weekend!