The canary in the coal mine this morning was the heavy call buying at the ISE, the traction in Treasuries and the anemic response to the jobless claims numbers. It is very difficult to get a read on sentiment these days as the put/call ratio has lost some of its effectiveness but the numbers this morning at the ISE were high enough to raise eyebrows.
The majority of the evidence still points to excess pessimism and the market usually has a tough time going lower under these conditions. But it is the time of the year when anything could happen.
The late day weakness might have been due to Tyco being added to the S&P 500 as there was a $2 billion sell order in order to accommodate the stock. Have a good night.