How Salmon Escape Bears ~ The Risk Averse Alert

Wednesday, October 05, 2011

How Salmon Escape Bears

Meanwhile, one day closer to the arm twisting phase of what will be called "bailout" in the euro-zone — but one of two available fast paths to collapse — a market straining to get off its knees still is easily discerned from a market about to surge higher...


Technically speaking, the message is all bad. Everything points lower. Negative momentum trending down should not be ignored.

Could wave b of b of (2) carry $SPX up to its 50-day moving average? Maybe.

NYSE McClellan

Then again, maybe not. The technical picture here, too, is not at all sparky. Quite the contrary. Bombs away, indeed.

Monday's positive McClellan Oscillator divergence from September 22nd apparently set up the market's bounce over the past day and an hour. Yesterday's late-day turnaround was big in setting up this positive divergence, no doubt. Had the market continued lower during yesterday's final hour, the NYSE McClellan Oscillator likely would have confirmed the move.

Still, all things technical considered (here and otherwise) the past day and an hour looks a lot like salmon doing what they do when they're about to die...

Unlike the bear in this video, the bear descending on New York looks in need of more than men taking flying leaps (that was hilarious!) for it to be denied.

Fast Money
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