S&P 500 – August 1, 2011 – Intraday

In the BMO post, I said:

“A knee-jerk reaction here can involve a good dose of squeezing the late, news-drive shorts. Question is whether bulls can carry after that has settled?”

In the BMO post of July 20, I said:

“I had mused that some (or perhaps all) of gold strength and equity weakness was due to political theater of US congress and that a resolution to that show might get a reversal, at least, temporarily in the order of things. I have not really checked if a deal on US debt ceiling is announced or not. If my hypothesis is correct, market is moving ahead of it. It may become a buy-rumor-sell-news thing.”

Sell the news it was but not much buying the rumor other than last night’s pump.

Anyhow, none of this changes my analysis that this is a market under distribution and headed for a mid-term trend reversal to the downside unless buyers appear en masse and buy for a couple of days at the very least

Here’s a 60-min chart of S&P futures

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