Last Friday it was Hammer Time, Part 1 as the indexes Hammered to close the day, setting up Monday's bounce. Then came the jawbone, the pump, the failure and now… (would-be) Hammer Time, Part 2. Isn't this market fun?
However, NFTRH.com posted a chart this morning, while the market was near its lows, of a support level that is really key. The market was going to bounce at this level. It always does at points where you, I and the chart jockey down the street all see the same thing. So too do the algos, black boxes, casino gamblers, substance abusers and day traders.
Adding to the ‘had to bounce' scenario is MarketWatch dutifully playing the role I had assigned to them last week and had a laugh about this morning.
Warning to Bears… DEATH CROSS!!
Yes, everyone seems to be playing their proper roles and nothing is resolved.
This is an opportune time to mention again that markets do not go down because China is in the news… or Greece was in the news… or apple is in the news. Markets go down because they go down and they go up because they go up. News flashpoints (and Fed Jawbones) only serve to roil things for short periods. The market is on its own plan and will either break down for real or up for real soon enough.
