One Day Wonder?

Spy_102005

As mentioned in yesterday’s post, I am in the “bear market rally” camp. Today’s high volume reversal and close on the low adds to the probability that the rally attempt will fail.  Note the resistance at the 20-day and 200-day moving averages.  Also as mentioned yesterday, at least some of this volatility is due to options expiration.  Tonight’s Google (GOOG) earnings blowout and after-hours new highs will allow market forces to reveal themselves tomorrow.  Google either jump starts the market or it doesn’t.  If the market fails get much mileage off the news or suffers an intra-day reversal then look for new lows.  Cheers!

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