With the S&P in bounce mode, all the usual suspects are there: low volume, low up volume, weak ticks, very few 52-week new highs minus lows. But there are plenty of higher levels for the market to explore, with 1695.30 being the spot which, if exceeded, could signal that the correction had been yet another dud.
Just 10 points lower is the gap at 1685.39. However, the market has yet to test the 1665-1670 area that I've been expecting. Continued strength today could signal that it may indeed make an attempt.
Otherwise, the feel of the market is a little heavy. Friday seemed to take a long time to get anywhere. I'm willing to blame it on Summer Trading which could even carry over into today's session, but by the end of this week we should know whether the market is ready for new lows or not.
Jackson Hole has ended with the Fed basically telling 35 other countries to fend for themselves. The standout quote was from Dennis Lockhart, president of the Atlanta Fed, who said: "You have to remember we are a legal creature of Congress . . . ."
Highly ironic that he should use the word creature -- as in The Creature From Jekyll Island by G. Edward Griffin -- to describe the Fed.
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