Just breaking our previous low. Can't wait to hear the media spout off that we encountered the great capitulation day today. There is still too much talk on the street about the market being "cheap" and a great buying opportunity to have all out selling panic. I expect we will go up 500+ points tomorrow and will hear "the bottom is in, buy now!" from the CNBC yuppies.
Correct! The market must first balance out from those two bullshit runs a few weeks ago. The market must go down 800-1000 points in a single day to signal true capitulation. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2186990
I think you watch far too much TV. The bottom line is that the stock market is simply reacting to what is going on in the credit markets . . . It's ALL about the Credit Markets! With 1-years trading at ZERO % and the most massive one-day Treasury rally in history where the long bond surges 3 and 3/4's points during the day session only to surge yet another 3 points since the 3PM Eastern close . . . that smells of people panicking/capitulating for yield. Very similar to what happened when crude was trading above $140 and the back months were contango'd like crazy.