Today’s market wrap on many Bubblevision channels and various websites can best be summed up by the two camps:
Prepare for doom
Still a buying opportunity
Reality is somewhere in between. The volume was not convincing on either side of the argument, technical indicators were “meh” at best, and there was no conviction in any market other than to sell precious metals and get out of US Treasuries (more on that tomorrow night). The Wall Street Journal Market Summary page says it best:
The S&P 500 failed at the 50 DMA which is now resistance and is rolling over hard towards the 100 DMA:
There was some major distribution in the NASDAQ hot stocks from the past two years and a lot of interesting options action but this is not the 12 billion share public panic to mark a stop to this selling.
Thus a rally may happen tomorrow and is indicated via the futures tonight:
Unfortunately for the bulls the rallies have been shallow and the market action very shaky in the former market leaders. If the public has finally seen a ghost,is not prepared to BTFD, and quit listening to the used car salesman hucksters on the Bubblevisions, a proper 10-20% correction might actually occur.
And knowing this inept administration, the corrupt Federal Reserve, and stupid Congress, 20% might just be a pause on the way down to something much, much, much, more significant.