If a picture is worth a thousand words, this picture, can probably do the same for bearish traders. In essence, the bears had the bulls at the edge of dropping off of a cliff (or subject themselves to a complete mauling). Actually they did push them off by breaking through 1430 last Friday.
But somehow, the bulls managed to do one of those Loony Tunes maneuvers and get back to some solid footing and escape yet again. After the second day of rallying in the market I started adding some short positions, thinking that that the bulls wouldn’t be able to muster much more out of this market, but the one thing that continues to get proven time and time again, is that the bears really have no claws against the firepower of unlimited QE3, just like they didn’t against QE1, QE2, and Operation Twist.
