Brutal day so far in the market today for the bulls. With all the reports that were released this morning, you could make the argument either way – jobless claims were up and the ISM Manufacturing Index report showed a decline, but home construction, personal spending and income were all up higher then expected. But the market chose to go with reports exemplifying the negative aspects of this so-called “economic recovery” and that is why you have the heavy selling today.

I took a long position in QLD and so far it isn’t doing jack-squat for me, still holding, but the chances of a significant recovery in today’s market is growing bleaker by the second as the bulls aren’t showing much desire to fight back.

We are trading within a channel, for the past 10 days, so to some degree the selling has been orderly, but the volume has picked up over the last couple of days, and that isn’t a good sign at all.

Here’s the S&P Intraday Chart…