Bears had their chance

The price action speaks for itself. I don't want to hear any fundamental arguments here--the bottom line is, the bears have had their chance TWICE (the London bombings and now Katrina) to slaughter this market and both days the market closed near high's. I think we might see a very impressive spike in equities in the near future.

 

I doubt it. Pre London the market hadn't traded up to meaningful resistance(SPX 1245). This month it did. The longs who came in today thinking this is London deja vu are going to be disappointed.

 

lmao at the open of market the futures were only down 4 pts and never down anymore. guess what the bulls ahve had low rates and blowout earnings for 2 years and have never been able to move the market either

 

The market rises one day on the lowest volume in 3 months. All of a sudden, they think the trend has changed. Look at the long term chart. The trend is still lower.

I actually like today's move from the bear side. It convinced a lot of "suckers" that the market is going up. Sentiment had gotten too low, but today fixed that.

 

Over the past 2 1/2 years, the S&P 500 is up ~45%, the NASDAQ 100 up ~65% and the Russell 2000 up ~85%.

Those run-ups probably reflect a cyclical bull market in a secular bear market, but they're not too shabby.

 

We shall see kids

 

Yesterday I was arguing that buyers would come in @1203 on the SPX trying to support the market.
That's exactly what happened today.
This shows the significance traders are placing in the 1996-1205 area.
I'd not be surprised if we'll test previous highs again

 

Profitable trading is based on the premise that people will keep on making the same mistakes as they always have. "This time it will be different", yeah right!

Sherlock

 

Saint words...

 

Still more downside to go. Once you see meaningful volume processed (lots of shares changing hands at bargain prices), then you will know the bounce may happen. Compare what has happened the last 2 times the 200/300 MA's have been touched and look at this time. It is different so far...not a lot of interest yet. You will know when it happens though.