Tsing Tao nailed it: algos Institutional traders/investors (which move the markets, not us itty bitty retail traders) have well-researched programmed trading in place to initiate buy/sell orders based on a mixture of fundamental and technical levels. Price prints patterns that repeat more often than not. More often than not is the code-phrase for "trading edge". Observe, make notes, prepare a plan, follow the plan, ride the coattails of the big money that move price. Right now, the fundamentals are not bad and the market is slightly undervalued. Right now, the counter-trend pullback move that appeared might become a true reversal signal was (at least temporarily) invalidated today and the technical price action signaled to buy/add to longs. If it wasn't for the mess in Europe we'd be preparing to test the year's highs soon.
As iceman knows, I was a buyer in the retirement accounts when the blood ran in the streets in August and October. It's been an interesting ride (especially JEF over the past few days), but net quite positive.
don't follow JEF but looks like today could be bottom for 4Q (or short covering) that said, doesn't look like a stock for a 'peaceful' retirement - wild never followed it
The market only responds to reality in the very long run or in a crisis (2008 is an example). The rest of the time it is a casino in which you can still count cards. Once you recognize this, two things will happen. It will get easier to make money, and you'll stop asking why the market does this or that. Since the 1970's inflation is the most important force behind the S&P 500. Inflation drives nominal earnings up, and inflation drives the market up. No one bothers to adjust nominal market values for inflation. If they did, after removing dividends, the market would be a nearly horizontal, very slowly rising, line plus noise. The market, when viewed in nominal terms and a longer time frame, will rise as long as there is inflation, i.e., virtually forever. You wouldn't waste time trying to figure out why a particular pattern pops up on a slot machine, and it is just as much a waste of time, in the short run, to try explaining why the market does this or that. That short term trading in the market is gambling, but gambling where you can still count cards, is Wall Street's most carefully guarded secret.
Despite the recent bull-fest, bears remain determined to prevent a xmas rally. Strong bullish warnings for USD weekly chart continue. Charts at blog. stockmarket618.wordpress.com