S&P and Housing Weaken

04/08/2010 9:48 am EST


Thomas Aspray

, Professional Trader & Analyst

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Stocks were hit with the heaviest selling in several weeks on Wednesday. Weak A/D numbers have dropped the McClellan Oscillator back below the zero line and it is still in a downtrend. This internal deterioration increases the odds of a further correction with key support in the S&P at 1140-52. A drop to 1140 would be a 3.5% correction from current levels. The S&P Homebuilding group has already broken support and could drop another 6%-8%.

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