Heavy volume indicates more distribution but now we’re getting short-term oversold and a bounce could happen with Turnaround Tuesday.

The bad news keeps hitting markets and investors are pretty freaked-out selling everything that isn’t nailed down.

You would be accurate saying the news from the UK is a genuine Black Swan. That said we’re quickly oversold and I would expect a short-term rally followed by a quick reversal followed by more selling. Sure the Fed and talking heads will do what they can to pump things up, but just remember this remains an expensive market by just about any measure.

Losses were widespread with losers in the U.S. building heavily on losses from Friday. Elsewhere you only need to look at the heat map below with everything weak aside from bonds, gold and the dollar.

Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day (green) may mean leveraged inverse or leveraged short (red).

Volume showed heavy distribution with breadth pushing close to 10/90.

Chart Of The Day

I’m prepared to experience a Turnaround Tuesday since we’re seen so many of these over the past 7 years. And we’re short-term oversold at this point…so…

Let’s see what happens.