The bulls shouldn't be too happy with the action over the last couple of days. Yeah, they're getting their bounce in price but the volume is waning. All three of the major indices appear to be heading for tests of their 200-day moving averages, which should be resistance, on lighter volume. Seems like some kind of catalyst (good earnings/guidance news from select companies???) is needed to get the buyers to step up to the plate with more conviction.
Mike,
The daily bars only tell half of the story. If you look at the charts, the past two up days on the S&P have shown "Big W" patterns in their intraday moves. This indicates that sellers are sitting on the sidelines just waiting to sell of their positions at any signs of weakness. Also, this little down move has violated serious trendlines, which have been in tact for nearly 3 years (Since the bottom in Oct, 2002). Finally, the Fibonacci Level indicates that we are coming extraordinarily close to a retracement back to 1075 on the S&P!
Take care,
Anthony