Still Looks like a Market Wanting to Go Down

When these opening bounces fail so miserably it just saps the strength of the bulls. Quite pathetic action to be blunt.

So I keep talking about S&P 1400. If this breaks what are the next support levels?

Looks like 1365-1370 which were the panic lows in August and March 2007. After that? Not very good - 1325 and below.

Unfortunately every computer in every quant hedge fund in NYC and Conn. is set to sell their holdings and go short if we break that 1400 :)

That's why this is gripping action.... as in white knuckle gripping. If that is all the bounce we get, the bulls are in serious trouble. This is like a shootout in the old West... everyone has their hand on their holster and waiting... I just can't imagine the "invisible hand" giving up 1400 so easily, but it takes some other people to help them out and do some actual buying out there. So far, very few volunteers.

So for now, we wait, watch and see who walks out of the saloon.