Today's action is actually worse in the long run for this market. There needed to be a razing of the European sovereign debt and equities through panic selling and that wasn't achieved. Now you have thrown a lifeline into a endless money pit. It only extends the pain and will come back to haunt this market later. It also puts to question the probability of a year end rally. If we rally now, we won't have as much firepower later.
I am short again. The first day of month auto buy orders have flooded this market along with the trend followers jumping all over risk assets. This buying power could last the rest of the week but by next week, we should be vulnerable again to a sharp pullback.
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