A lot of foldable cash left the market last week. Actually cash left the market at the fastest pace in five years. About 12 billion left stocks of which 9 billion of it left $SPY. It will come back.
The market froze like a deer in headlights for a few hours yesterday. It was a technology issue. I guess they should have done that Vista upgrade when they were supposed to. Conspiracy theorists point to some odd selling in $AAPL right before the freeze. I don’t. The stock traded from about 502 to 499.50 on about 700,000 shares. That’s a chunk of stock, but hardly enough to freeze an exchange. I thought high frequency trading was supposed to provide liquidity? I guess not this time. Shit happens.
I’ve been watching $SPX 1630 as my level for a couple of weeks now. That area looks like it was successfully tested yesterday and we got a bounce. We’ll see if it holds , but I’m optimistic.
The fact that the hounds of hell weren’t released on the market yesterday is also bullish to me. It been a tough couple of weeks and the bears could have knocked the snot out of the tape, but they didn’t. $$SPY actually inched higher throughout the whole three hour freeze out. This all happened as the 10 year yield rose a bit too. Good sign. I think the market is close to getting over this whole yield thingy.
You couldn’t find a bull at a rodeo the last couple of days.. That’s when you buy them. RSI on Dow and S&P also said to buy them
Did you wonder where Bernanke was yesterday? He wasn’t at Jackson Hole. I think he’s working tech support at Nasdaq, but that’s just my own conspiracy theory.
Things are starting to look a little better. Good luck today.