With barely two stocks advancing for every stock declining on the NYSE today...
And with the NYSE Composite Index up 1.68%...
And with volume widening sharply...
Carter Worth's question asking why the Dow did not finish up 1000 points — after having been up over 300 points in the first two minutes of trading — seems to summarize the day's activity spot on. Now, we will just have to see if those booster rockets are fitted with the same old faulty o-rings...
At this point I am not necessarily expecting the market to blowup immediately. With the S&P 100's opening gap higher holding following this morning's steep pullback ... as well the index's subsequent recovery ... present circumstances probably are not exactly like those post-Gustav. There might be a little more bobbing and weaving before a continuation of last week's selling gets under way.
The RSI extreme registered at this morning's open provides evidence of the sort of imbalance between buy-side and sell-side strength that generally leads to a reversal of fortunes. Likewise, RSI's configuration since Friday's bottom is indicative of a move reaching exhaustion.
It will be interesting to watch how things further play out now that fantasy land on Wall Street has completed its big merger with the U.S. Treasury...
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