Each and every day the bonds have provided the source of fuel for the stock market. It has become blatant but nobody is ever investigated. This morning we saw a sizable rally before the NYSE opened and then the monies were pulled from the bonds to provide the fuel to push the S&Ps up 10 full points. The major difference on Monday was that the bonds sacrificed themselves but not for the stock benefit. Bernanke may be changing his computer programs. The S&P 500 gains made above 1630 could be erased in one to two days as this market is having difficulties maintaining gains even with the plucking of monies from the bond futures to subsidize the S&P futures. The incredible 14 consecutive days of a higher low was decisively broken on the 15th day. There should be a massive inquiry into the Federal Reserve's actions regarding this latest stock market push. Even with the Federal Reserve buying there still was a correction as he made this market so incredibly heavy it had to correct. We broke through the key support of 1660 and then 1640 overnight. How much can the bonds bounce from their approximately 7 1/2 retracement from the highs? The 7 1/2 retracement corresponds to approximately 5 % pullback.
We almost reached a plus 1000 tick Friday which was our shorting opportunity. This is important because the failure of registering plus 1000 is not the key but the closeness to the plus 1000 is. We journeyed above plus 900 tick but yet could not get plus on the day. Truly much energy was expended for little benefit to the bulls. We have stayed below 1660 for two consecutive trading days after we broke through on the close Wednesday. Therefore this market's wounds are very extensive. We could see somewhat more push to the upside but without ample tick, this market does not have much zest yet. Keep in mind the critical number for the bears to win and the bulls to hide would be a close below 1620.