Wall Street: In Desperate Need of Dumber Suckers ~ The Risk Averse Alert

Friday, October 02, 2009

Wall Street: In Desperate Need of Dumber Suckers

Quite the poor showing this week. In even more glaring fashion than last week the market's further technical degradation but confirms the move lower thus far, and suggests there could be still more selling in store and stat.

SPX 5-min

Unlike last Friday no RSI divergence occurred at today's low in the S&P 500 (at the open). This should be expected before a bounce of any consequence materializes. So, absent any indication support is building (and could this absence be any more glaring these past two days?) Monday could be a disaster.

Short of disaster, though, it seems prudent to expect whatever it takes to hold this thing together for as long as possible. This view is put forward solely out of recognition for many months now passed where little in the way of selling pressure has developed despite some measure of technical weakness becoming increasingly present.

Now, whether the stock market can be levitated any longer really is questionable. There's a good case for claiming the post-March '09 bottom, counter-trend rally is over. Yet, even so, just how quickly everything might unravel is entirely unclear.

Fast Money
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