Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Very disappointing action considering $125B was just pledged to the global system. That said (trying to see both sides) the market has come a long way in a week and it is likely the action would have been better if this had come in the middle or beginning of an oversold bounce rather than on the 6th day of it. But considering where the market was 12 hours ago in the futures market this is a huge move down versus that level.
There is a lot of resistance above in the S&P 1340-1370 range so as I keep mentioning, rather than a V shaped bounce with nothing but air behind it, building a few weeks of sideways action would be the best bet for bulls to create something that lasts in the months ahead. Bears of course would say we rally to this level, and roll over as we continue to play global “hide the debt”.
For those who utilize the IBD system of follow through days we are now on day 6, so that elusive +1.7% day would need to come this week.
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