When I went to bed last night (actually something like 3:30 AM this morning), Dow Futures were up something like 366 points, S&P; futures were up about 50 points or so, and Nasdaq futures were up on the order of 100 points.

Given only 6 stocks on the S&P; rose yesterday, one might reasonably have expected a rebound for at least a day. Let’s take a look at what actually happened in the cash markets today.

S&P; 500 10-Minute Chart

Dow 10-Minute Chart

Nasdaq 100 10-Minute Chart

Russell 2000 10-Minute Chart

Overhead Supply

Dip buyers had another rough go of it today.

That stocks could not muster even a one day rally in spite of extremely oversold conditions could be an ominous sign.

Despite significant gaps up, with further momentum until noon, the indices all closed in the red. This indicates a huge amount of overhead supply.

Mike “Mish” Shedlock