Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
We did indeed see the morning gap down get filled, so much like yesterday it’s been an impressive turnaround. That said, yesterday’s turnaround led to nothing but a gap down. So the market remains in the “vicious” category and that won’t change even with a 2-3% rally from here. It is a headline driven macro environment with rumors this morning that Greece would not get a tranche of its bailout due to rhetoric, followed shortly after by comments that affirmed the bailout was still coming. That is the type of environment we saw in back half 2011 and it is not an enjoyable one. Healthier markets acted as we saw in Jan/Feb where volatility faded away – daily 1-2% moves are not the prescription.
While the morning gap down has been filled the market has not yet been able to make a higher high (a price point higher than the high of yesterday). Indeed that has been the case for a week now. This would entail a move over 1370… at the bare minimum this would be a requirement to have any bullish feelings outside of the realm of the daytrader types. And 1370 is a tough nut to crack.
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