Even the SOX is poised to retest the lows around 200, as we are on a SEQ daily 9 count. It will be interesting to see if the SOX makes new lows (unlikely) with 3 lower closes to go, although the Seq has a different counting model and does not need real new lows compared to the Combo. We should get close though, as the minimum low for the NDX is 1200 but to complete the overall count in the NDX daily it needs a new low even. The rally to 250 is the minimum upside target thereafter.The SOX is sold off due to Intel remarks about the economy and poor outlook from Cisco. The usual suspects (financials) also drop sharply. Volume is still mediocre in the best case - I'll post later with Citi chart - that's still a good short as it has to go single digit - I do not repeat my usual fundamentals (doom and gloom). Sell strength in the next days - if you can trade shorts one of the safest bets is still on financials and my favorite is Citi but even Goldman is poised to go lower - but that should not be your choice.
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