So are we going to bounce off it like we have been doing or is this time different? The bounce on Aug 16th was on option expiration and was fed induced by cutting the discount rate the next morning, as we all know the investment banks we tipped off and created that long hammer marking a short term bottom. So what kind of tricks are we in store for.
This wide rage we have been bouncing around in looks to be distribution. The down days are on enormous volume and very negative breadth. The up days are just the opposite.
First close below 200dma in 17 months. This area inside the box smacks of distribution. You see what good the rate cuts are doing, none what so every, just creating more inflation. Pay close attention to the CPI,PPI next week. The thing about these number is they get re weighted when things start to skew the results. WeAther or not the 30 cent rise in unleaded gas has made its way into this report is unclear. The stock market is getting hammered, you can be sure some manipulation will occur. That is unless wall street is now out of their longs and into their shorts.