Friday, May 28, 2010

So Much for a Quiet Holiday Session

For the first day in many days we woke up to a flattish premarket... at least not the +/- 1 to 2% nonsense we have been getting day after day. One would think we'd have a break from drama but no. With this break of S&P 1094 things turn more dicey again. Of course the close of the day is more important than the intraday action but really what was that fat thumb action at around 12:40 PM? Huge volume spike based on... ? Algo #892,311 saying to Algo #238,112: "011100011110100011!"

EDIT 2:35 PM - nevermind, it was not a fat finger - Spain was downgraded. Now all the suddenly people respect the assessment of the rating agencies... hah.

On the flip side it is encouraging to see the 200 day moving average - the strongest one of the bunch - actually mean something & not be sliced through as if it does not exist. It is almost a tease of days of old. If 1094 cannot hold that huge range from 1040 to 1094 is back into play. Well as long as we don't gap up Tuesday morning back over 1094!

EDIT 2:50 PM - ignore this post, right back to S&P 1095. Spain only mattered for 2 hours. Yawn.

I remain mostly in observation mode until the market stops rallying or cascading down 1% in 10-12 minute increments.


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