S&P Hits 38% Retracement Today

If there was ever a picture that validated this was a trader's market, it is this. The market clearly bounced along the 23% retracement level before assaulting the 38% retracement level today. This is pure trader gamesmanship. Even though the market is up substantially today, by one of my most important data points, the market has been very weak since July 30th. And today's move was a futures driven move not confirmed by the cash market. In other words, it's more traders playing more games. We have to wait to see if this any relevance to future pricing or not.

But there are a few things to remember as the press again turns rabidly mad, foaming at the mouth as it has recently. For those who follow the financial press, the tone has been deafening over the last few weeks. The bulls are in complete control and the shills are nearly beside themselves with glee. All for 50 S&P points. Since the market top two months ago, we have basically moved 50 S&P points. You would think the Dow were at 50,000 from the intensity of the idiots in the financial media. If the Fed gives Wall Street a complete backstop and doesn't reform financial markets, Wall Street is going to go back to playing whatever games they so choose until the market again forces reality back upon them. You must realize as we were bearish before the crash, it was based on economic models that told us of foreboding trouble. The shills were ecstatic then as well. I don't really care if the market goes to 50,000. It is still coming back down without intervention from the second coming of the Messiah. This is not an arrogant statement. It's a reflection of the confidence I have in a tremendous amount of work that allowed us to foretell of a coming credit crisis in the first place.

Nothing has changed other than the Fed dumping hot money back into the casino. It too will eventually vanish. The American economy is broken. Period. And maybe more importantly, so is the global economy.