The collision of global markets and social mood

Thursday, June 2, 2011

The Dilemma Of A Weak Market

I was looking for a bounce this morning. I got a little more than I bargained for -- a bounce-flush-bounce-flush-bounce.

The interesting thing about today's wild ride was that not one bounce went higher than a 23.6% retracement of the move from Tuesday's highs. That says weak.

Here's the dilemma though: I find it very hard to short it here. So while the S&P is telling me that it's having trouble getting up off the mat, I haven't seen it break its series of higher highs yet. Until I see the S&P break below the April 18th lows of 1294.70, it still may have a few tricks up its sleeve.

Hopefully tomorrow's jobs number will provide enough near-term volatility to take the S&P to a higher or lower extreme for an entry with higher odds.

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