You just know that, with today's similarity to May 2008 identified — this at a time when omens appear and banshees run rampant — something different likely will develop and end yesterday's noted similarity with conditions at the precipice in 2008. This outcome, indeed, seems much more the rule, rather than the exception.
So what will it be? Collapse immediately? Or prolong this rag doll's levitation? They sure are tossing this thing around.
No news of an imminent, systemically threatening bankruptcy, so let's go with the latter. Enough for the moment is the rush to safe paper and physical resources amidst an escalating need to bail out toxic securities choking the financial system. Clearly, the seams of our tattered rag doll are near bursting wide open.
You have to love how weak hands now in control are raising capital. With a floor set during the first five minutes of trading the rest of the day simply was spent bleeding suckers. Only supply enough to leave intact the floor established shortly after the market's open was offered up this afternoon. Evidently (as should be expected) the takers proved to be even weaker hands than those starving for capital.
I am rather expecting a bit more selling pressure and possibly a [positive] technical divergence or two developing before any move back up to the area of 200-day moving averages develops. The trip higher could be rather choppy I suspect. There's only so much abuse even a sucker can take. Diminishing upside volume so far over the course of this year rather convincingly suggests this.
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