The Dow finished up 547 points yesterday and that was AMAZING – almost as AMAZING as that day we fell 843 points, way back on…. Wednesday of last week. But hey, 547 points is only 296 points short of catching up to a one-day drop so – RALLY TIME!!! Right? No, not right at all – especially when last Wednesday's down volume on the S&P was 275M shares and yesterday's up volume was 118M shares. If the stocks were really so attractive – what happened to the other 157M shares worth of buyers?
The thing is – those sellers took their money OUT of the market and yesterday's buyers decided to build things up with a MUCH WEAKER foundation than the one that collapsed last week. So, while a bounce like we had yesterday is good progress on the way to a hopeful correction – it don't mean a thing unless we can spend two full days over the strong bounce lines which are: Dow 25,700, S&P 2,800, Nasdaq 7,250, AAPL $226 and Russell 1,630.
We're already having a bit of a pullback in the Futures and the Dow is below, S&P barely holding, Nasdaq way above, AAPL below and Russell way below – not exactly the stellar performance you would think we are having if you listen to the talking heads on CNBC and Bloomberg, who are paid by the investment banks that advertise on their show to tell you what a great idea it is to put your money in the market.