Give Mr. Market a Field Sobriety Test

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The random, herky-jerky price action after this morning’s gap lower and subsequent upside reversal has made it difficult to do much in terms of initiating new swings. You almost get the feeling that Mr. Market is drunk, but he is doing his best to “stiff arm” the steering wheel while he drives, hoping his car does not swerve to avoid being found out. The rising wedge on the intraday SPY chart I noted in my last post has broken down, but has yet to really resolve sharply lower. Instead, we saw a breakdown and then a leveling off. Just as the case was yesterday, the close should be telling today.

Without question, I see plenty of beaten-down charts that should be good for a fierce, multi-day rally. However, when Mr. Market is operating under the suspicion of being drunk, as we have seen over the past few months, anything goes.