How much was profit taking and how much was <i>weak hands</i> today is hard to tell at the moment. Next week should reveal more information.
I think the last hour reflected Paulson's comments that he basically won't use whatever is left of the $700 billion bailout fund.
This market blows. Just dragging along indecisively now. It's like people are unwilling to buy yet at the same time there's not enough selling pressure to challenge the previous lows again.
Is there any reason for the market to rally at all? Anything in the next year? Seems like a slow bleed into the 7000's is more likely.
Well, the problem is everyone would like to be a bear until a few institutions decide to jump in and rip everyone a new one (see last week). I think the slow bleed is looking increasingly looking like the path the market wants to take now. Technical indicators say that we should be getting a rally bounce, but the problem is that there just isn't any good news to rally on. Yes, that means I'm backing off my previous opinions. The last rip we got off the lows should have propelled a major rally, but it lost steam rather quickly and now treasury yields are plummeting again. By the way, those of you who are long AAPL, I'd be watching my rear if I were you. The technical setup does not look good there.
And this, right here, is why I'm feeling rather bearish right now... In the last fakeout/test of the lows we saw, there wasn't a significant move into treasuries that would indicate that a major selloff was commencing. This time, there is -- and it's big. And it started today.
JeopardE There are very likely expectations that the next test of the <i>Bottom</i> won't hold this time. We have been having <i>Lower Highs</i> lately and that isn't a good sign. Probably a rally next week, but this week is likely going to get <i>interesting</i> if the <i>Bottom</i> doesn't hold.
The market seems to be trying really hard to crack the S&P 500 at 820 or so level (intraday low from last week) and the Dow 8100 or so, but can't seem to sustain either way. When we bounce of it, it comes right back down. When it tries to crack it, it bounces up. I don't know if that's a good sign that it can't crack it or a bad sign that it can't get away from it.
Game over for the world. Time to stock up and guns & ammo. Squirrel meat will be a delicacy very soon.
It has done this a few other times only to bounce back to 9500. It will be interesting to watch what happens tomorrow. Usually when skf is at 200 it is time to go long, but skf left its trading range so there is some uncertainty.
