Thursday, November 17, 2011

SPY Rally seems to have failed

If the market closes below the breakout point (just below 122.5), it would confirm failure of the breakout.  Note the two recent rally attempts were turned back at successively lower highs, and down volume continues to exceed up volume (distribution). 

This is a sloppy, weak market with a lot of fundamental overhang (watch Italy closely).  Washington is a dysfunctional mess with the Know Nothings obstructing any meaningful stimulus and the crop of Republican candidates sans Romney looking like some sort of a freak show rather than the best and brightest of what such an innovative country of 300 million people could produce.