Weekly Summary

Another volatile week in the back pocket, and no real improvement in conditions. A lot of bad days spiced by one huge reversal for half a day - but we ended up significantly lower on the week. Technically, we continue to grind at best sideways and an honest assessment would say "lower". Last week we named our range as 850 on the downside to 970s/980s on the upside on the S&P. We penetrated below that Thursday (840 was the line in the sand), set off a rash of stop orders as we quickly collapsed to S&P 820 and then a technical reversal which trading desks jumped on to make some quick short term gains ensued. But we lost much of it Friday as the lack of conviction permeates.


An optimist could say we are building a wide base here; a pessimist would say we continue to make lower highs and cannot even break through the 20 day moving average to the upside. This bear...