Reversal of Fortune

An angel's smile is what you sell
You promise me heaven
Then put me through hell
--Bon Jovi

Market trends often culminate in a reversal day, where early strength is sold and another seemingly positive leg higher turns into a loss. Yesterday, the gap higher surrounding the weekend tax cut euphoria didn't stick and, by mid-day, major indexes began to leak.

After a rally attempt by the bulls, markets closed near session lows in classic 'sell the news' fashion.

Of course, this bull run has produced many false signals of its demise. This may be another one. Key will be whether we see downside follow-thru in the near term.

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