What a ride!
The Dow blasted up 600 points from yesterday's open, half of it since the markets closed last night and there's no actual reason for this – the market manipulators are simply taking advantage of the lower volume to boost everything back up so they can start selling again. This is what we expected to happen in Monday morning's PSW Report, where I noted:
Generally, the market has trended higher in dull, low-volume weeks and this week, we don't have time to lay about as our bounce chart is wrecked and we need to be over those strong bounce lines by Friday or the whole week can be written off as a consolidation for a move lower – so let's watch our levels carefully:
- Dow 36,000 to 34,200 has bounce lines of 34,560 (weak) and 34,920 (strong)
- S&P 4,700 to 4,465 has bounce lines of 4,512 (weak) and 4,559 (strong)
- Nasdaq 16,500 to 15,675 has bounce lines of 15,840 (weak) and 16,005 (strong)
- Russell 2,400 to 2,080 has bounce lines of 2,144 (weak) and 2,208 (strong)
Since Monday morning, the Dow and the S&P have added green boxes but we need more than just the Dow to be over the strong bounce line to call it progress. The S&P (/ES) Futures are at 4,547 this morning – so…
