5-8-12 morning comments

We are waiting for either a follow-through day or a breakdown.
The NASDAQ undercut the 4/23 market lows yesterday. This kills the rally attempt that started on 4/23 resetting the rally count. To have a follow-through day it needs to occur on the 4th day or later in a rally attempt, today will be day 2. IBD has the market in correction, the Market Exposure model is still at a +1 count. A close below the 4/23 lows today or later would cause a sell signal putting the Exposure Model count at 0 with the buy switch off. The fact that we closed positive yesterday after undercutting the 4/23 lows could indicate short term positive bias (premarket indexes are down). We are 2.5% below any level that could cause any other buy signals, I am not expecting that kind of enthusiam toaday.