Friday, May 28, 2010

House of Cards

This market has no liquidity and any motivated selling drives this market down with ease.  The last hour just shows you how thin the market is.  You never had this kind of craziness in February. I think too many traders are still caught in bull market uptrend mode.  That has been thrown out the window.  Look for more weakness in the coming weeks, with very limited rallies.  I think we see 1020 before 1120.

2 comments:

Anonymous said...

The market today is simply in yesterday's range. I don't see what's to be so bearish about.

Anonymous said...

actually i am calling for one more push higher. Maybe till 1110. You might be right, however, I just don't think that was it for the bounce. Yeah the market bounced 5.7 % if you count the brief moment it was at 1040 last week. However, I just think bounces have a little more glue than this. It's the beginning of the month and June is not bad for stocks. I know July and August are.