So far, the market is doing ok/good accumulates selling and the VIX made a new high at 59. Especially the NDX is doing well since the Oil sector is under big pressure. I like what I see so far - we need a positive close but the odds are rising that we will.MRK (left hand weekly chart) is a candidate for accumulation as we have a week 12 but wait for the 13 until you start. That's in contrast to GE, which made a 13 on a daily basis but looks vulnerable on a weekly basis as do most financial related stocks by the way. The Libor rates made new highs today, although we got quite some action from the FED, hence the credit crunch is not easing at all.
Looks like a neutral close today would set the ground for a Thursday/Friday short covering session. This is only due to short-term players might want to cover before the weekend and hedge funds do not have the nerve to lose any more money these days and the market is definitely short right now. The investor Intelligence numbers came at extreme 53 bears against 23.3 bulls, which does help on the sentiment front.
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