July 28, 2008
A new week and more of the same from Wall Street. Oil showed some strength, in which if it decides to rebound or at the least give us a dead-cat bounce, after two weeks of solid declines, this would not be the most ideal of times for the bulls as it is trying to stave off another attempt by the bears to push these markets to new lows.
The most positive development that we got out of the markets today was the fact that it was unable to see a strong selling effort in terms of volume on the part of the bears especially since the markets moved about 2% lower today. Nonetheless, in order for the markets to move as much as they did today on the low amount of volume that it did it on, shows you too things. 1) The bids on individual stocks are extremely shallow, and thus the price of securities can be pushed down fairly easy, and 2) the bears at this point are not aggressively pushing the markets lower. How much would the markets have fallen today if we had an above average day for volume/selling?
If the bears show any aggressiveness whatsoever and the bulls show an unwillingness to put any capital to work going forward, it could get really nasty, really quick.
Here’s the NASDAQ and S&P Charts…