S&P 1216 and Merkle is not going to Reinflate….Update at 11:10 AM CST
Until the S&P 500 can close over 1216 this is just a recovery bounce. The market was an oversold value buy at 1172. Now it has to prove itself if bigger things are to happen.
On the positive side the “big in the know money” is shorting stocks and good old Maria Bartiromo on CNBC had an interesting aside in her wrapup at the market close yesterday, saying the market was struggling higher (after a 300 point Dow rally). And “Getting back to Even Cramer” says to keep selling stocks until Merkle starts reinflating. Folks, this is where the funny money crowd remains. They may be big enough to make things happen but if they fail here….
We are in choice contrarian country.
UPDATE: We sold out 50 percent of our long stocks at the S&P 1202 level. Will wait to see if market can cross resistance at S&P 1216 in the coming week.