Over The Hump

We needed to work off the Fed-inspired overbought condition through either time or lower prices this week. It is quite evident from the past two days, however, that the market really prefers to do the latter.

The good news (and yes, I'm stretching) is that we didn't break 1320 in the S&P. The bad news is that Cisco Systems (CSCO) hasn't really helped lift spirits in after hours trading. One stock doesn't make a market, but that won't help tomorrow. Maybe rumors of another rate cut or bond bailout (see MBI) will save us again, but this market needs a batch of new catalysts away from the same old shtick.

In my view, the selling today looked fairly orderly and without much stress or panic. I sense people really want to believe that January's "panic" lows will hold on the retest which is why things will get far more interesting when that retest fails. Bottoms aren't formed amid complacency and hope for the best which is what I'm seeing. Before I go, here is an update to the.....[READ]