Countdown to Destruction ~ The Risk Averse Alert

Wednesday, September 07, 2011

Countdown to Destruction

If it won't be a constitutional court to take the euro bullet, then it will be a parliament or a bank. One down, two to go, while the whole shebang still remains very bankrupt.

I did not once yesterday consider how the day's turnaround might be like the same on Friday, August 26th after what was a rough start to that day's trading, too. I might have thought, then, today could set up to be almost a carbon copy of Monday, August 29th (which it was)...

SPX 15-min

Today's extension of yesterday's rally off bottom only raises the image of a cat toying with a trapped mouse. There is absolutely no substantial interest underlying this rally, that is any preceding indication revealing stocks were being accumulated in anticipation of a sustained advance. Rather selling off last Wednesday's peak simply abated yesterday, and this primarily accommodated the market's turn higher today. Of course, a fat pre-market bid this morning, building on Europe's "fantasy lives another day," counter-trend bounce, played a large part goosing today's move higher.

So, it appears an a-b-c corrective wave forming wave (2) of C off August 22nd end of wave (1) of C still is unfolding. Once this completes over the next couple days, look out below.

Fast Money
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