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The S&P 500 and the XLF, ETF for the financials, have found some immediate stiff resistance up at their declining 20 day moving averages. After showing some strength over the past few days, the danger of a rollover has to at least be considered here. Treasuries and volatility are up again, while gold rallied hard off of this morning’s lows, putting the “Fear Trade” that had become so prevalent over the past few weeks back in play. While the vast array of double, or “W”-shaped bottoms that have formed on the major indices in August remain intact, complacently assuming it will hold can be an expensive proposition.
“There is a fifth dimension, beyond that which is known to man. It is a dimension as vast as space and as timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man’s fears and the summit of his knowledge. This is the dimension of imagination. We call this the Twilight Zone Market”.
Sure feels like that recently.
@stockcats – it’s not THAT bad. It’s just tough. We’ll get through it.