After yesterday's selloff, the 50-day moving average failed to halt the decline of the SPX, but the market is oversold on short-term measures.
The North American markets woke up this to two key pieces of news, which upon further reflection, may not be as bad as anticipated. First of all, global markets sold off on the news of the massive earthquake in Japan and there has been tsunami warnings issued all over the Pacific Rim.
Early indications are the tsunami has fizzled. Taiwan lifted its tsunami warning, as "the biggest waves that reached Taiwan after the earthquake were detected at Wushih, in northeastern Taiwan's Yilan County, but they had a height of just 12 centimeters."
In addition, the much anticipated Saudi "Day of Rage" protest has fizzled because of a strong security presence.
Will the market continue to weaken or will these silver linings spark a rally? How the market reacts to news like this will be a key "tell" to the health of the bull.