Unbelievable! While the market is slow and boring, it is nonetheless interesting to watch these ditzy bulls do everything they can to finish one tick in the green – as if that really means anything in the grand scheme of things. The last three days the bulls have clearly been running out of steam and are desperate to find news of any kind to rally the markets. Yesterday it was Bernanke getting the nod another four years, as if that was a real surprise, today it was a durable goods report that was inflated by the free-handout in Cash-for Clunkers program, and a positive home-sales report.
However, the market couldn’t rally off of the news today, and the showing from the bulls in terms of volume is anemic on the S&P. In the near-term I think this market goes lower. I have a few short positions out there to take advantage of such a move, once it happens, I’ll be adding more to the list. When you start getting these shooting stars/doji candles at the top-end of a rally, there is cause to be worried on the bulls behalf and to tighten those stops. I’m just waiting to hear someone tell me how “this is a different type of market”, and then I will know it is “On Like Donky-Kong!”
Here’s the NASDAQ and S&P charts…
