This afternoon, the major stock indexes have fallen apart. Every important stock index has given up its early gains for the day. Earlier today, the SPDR S&P Trust (NYSEARCA:SPY) traded as high as $136.23 a share, however, this afternoon the SPY is trading lower by $1.28 to 134.04 a share. This is certainly an ugly bearish reversal if we have ever seen one. Short-term traders should watch for some intra-day support around the $133.40 area.
Some of the leading stocks that have shown major reversals today include Questcor Pharmaceuticals, Inc (NASDAQ:QCOR), Joy Global Inc (NYSE:JOY), and Cummins Inc (NYSE:CMI). It seems that every active investor is waiting for another stimulus plan by the central banks in order to catch a rally. Until the central banks announce more quantitative easing it would be prudent to expect these markets to remain weak.