Finally, a day of weakness in the market

Today Nasdaq was down 1.3%, Dow had the best showing of all indices, only down 0.4% and Russell 2000 was down 1.8%.

1. Again the economic data showed more weakness of the economy, and Dow was in new high all day long until 2PM, then it finally gave up to finish in red.
2. My recent pick up in TWM (Ultra short on Russell 2000) turned out to be a good pick, DXD was still under water, but recovered some loss. IWM's chart is the first major index that's broken to the down side. QQQQ also show weakness, SPY is better and DIA is still firmly in up trend.
3. I think the charts of these four indices tell me that this is the top of this market, think about it, the more aggressive and speculative IWM is the first to break, and people hide in a safe place like Dow, since that's the quality index. If people start to seek safety, then it's really the end of this rally. The weakness in IWM and QQQQ tells me it's over.
4. I expect a follow through this week to the down side. If market goes down, I think Dow will join the club eventually.
5. Sell in May and go away.
6. But any good news this week will again be used by bulls to run the bears over; on the other hand, any bad news will complete the reversal of the market trend, and I expect a much quicker down slope than the up slope since March 29th, it may only need 10 days for us to go back to the March low.
7. Right now it's still premature to predict a sharp down turn, but at least today's action is a sign.
8. And gold and PM stocks again proved to be a bad place to be in a down market, where is the hedge against a down market?
9. I think all assets are overvalued and expensive, they may all go down hard if there is a market sell off.
10. Let's see what ISM number bring us tomorrow. Today we saw consumer's spending is slowing.
11. After bell CC had a very bad report. Circuit City withdraws its forecast for the year. I think this should not be taken lightly, it's again a sign of end of a business cycle.