About 9% in gains in just two days and you were thinking that we would keep adding on? Mr. Market isn’t the type to act suddenly optimistic about things when for so long, he’s been in a gloomy mood – and today was a reminder of just that.
On Friday we ran in to the 50-day moving average and today, the indicies ran into the exact same thing again, but this time, it sold off heavily and filled the gap that was created by the previous session.
Its hard to tell at this point, what one can expect from the market since it is being manipulated worked on by the SEC and broader federal entities. If the market keeps selling off, I’m sure you can expect further price manipulations changes suchs as the outright ban of short-selling all stocks. Yeah, thats right take out supply, so you can inflate the demand some.
If you looked at the volume today, you saw that with half the volume the bears were able to take the markets very low. Just shows you what the bears are capable of doing even without the ability to short the financials.
Here’s the Nasdaq and S&P charts…