SPX plunged to 1,343 in the morning but amazingly enough, for the third time in a row, bulls managed to recover 20 points. Then came the final hour when bears were in control once again pushing SPX almost 10 points down. Market is now bellow the previous low (1,359) and is out of the trading range by a few points. The next support level is around 1,345 (the March low), a level that was actually touched in the morning.
Weekly DMI continues to be positive but the gap is closing. The most bearish index is Dow that ended down for six days in a row and lost almost 450 points. Tomorrow it may be the seventh day in a row on the losing side for Dow (CSCO is down almost 3% after hours after reporting the earnings).
Despite the recent bearishness I can't say bears are in control. I am saying this because every time market plunges somebody "up there" seems to jump on stocks and push the market strongly up. It happened today and it happened Monday and Tuesday as well. I suspect these are big players (fund managers).
Where are we going from here? Probably further down but I want to see the bulls unable to push the market so strongly up after touching new lows.
All the best!
babaro
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