Here, in my opinion, is the good news for the bears, represented by the two charts below:
+ The Euro almost perfectly reached my target of 1.3; it seems to be weakening already, and its huge strength this morning did nothing for equities;
+ A consistent series of lower highs;
+ And lower lows;
+ This week’s highs didn’t violated the 1102.75 level I pointed out earlier this week;
+ Not shown on any of these graphs is the fact that companies have been producing record, blow-away, oh-my-God earnings (like AA, presently down 2.29%, and INTC, down 0.77%), and even though people bid up the stock after hours, the pop fades and all those greedy bulls wind up with losses.
As I mentioned yesterday, the past week has really stunk for me, but today is going great, and I’m thinking this rally from hell might have exhausted itself yesterday. I sure hope so. GOOG’s earnings, announced about three milliseconds after the close today, will be another interesting item to watch.