S&P 500 - Nov 16, 2008

charts courtesy of stockcharts.com

Another day, another 50 point chop on S&P. Technically it can be regarded as a follow through rally based on volume and close. Breadth, however, was not that strong. Of course, it takes time to heal the scars of the bear. But I would expect a follow through day to have more advancers and better up volume than down volume. And, why do we make so many new lows?



There is an area around 850 on S&P that has become very important. The problem is everybody knows that 850 is important, and it seems like everybody just watches to see what happens. S&P drifts down, crosses below, and then is miraculously revived. How much of it short covering, how much of it savvy traders? How much of it is manipulation, how much of it true buying?

All I know is that it is still a trader’s market.

I leave you with this 5-minute chart that displays the revivals of Nov 13, and 18