Midday Market Update

The market is, again, trying to stabilize and form a short term base after several weeks of ferocious selling.  On shorter term time frames, I have been seeing a pattern develop over the course of a few days: a huge gap down, followed by a possible inverted head and shoulders bottom.  Thus far, the success rate has been dismal, which illustrates the notion that the supply of stock is overwhelming demand.  The 10 Minute chart of the S&P 500, seen below, should show you what I am talking about.

I plan on holding my long “swing scalps” for another day or two, but no more than that. The temptation here is to convince yourself that the worst is over, and therefore you can buy stocks freely.  I believe that we are still in an unhealthy market full of broken charts. Do not forget that the burden of proof has now shifted to the bulls, as we are still below the 200 day moving average.  They may very well rally us back into a constructive market again, but they have an awful lot of work ahead of them.

NOTE: Video footage of iBankCoin confronting third tier toilet blogs accusing iBC of not being transparent because we don’t use Covestor (despite PPT timestamps):

[youtube:http://www.youtube.com/watch?v=iLdCqG6WhOE&feature=related450 300]