28 April 2014

SP 500 and NDX Futures Daily Charts - Daily Wash and Rinse - Party LIke It's 1987

"Sometimes you just have to bite your upper lip and put sunglasses on.”

Bob Dylan

Stocks did a big dipsy doodle today, ahead of what appears to be a big week for economic news and geopolitical uncertainty.

The foundations of this market are very weak, and this is both a weakness and a strength. Because the volumes are so light, and the trade so dominated by technical algo trading and gaming, it does not take much to shove it back up when it starts to go lower.

The weakness of course is that this same 'fluffy' character of the market will leave little support if heavy selling should be triggered by some internal or external event. In that sense it is like 1987. It is a market and an economy founded on sand.

Have a pleasant evening.