SPDR S&P 500 (SPY)

[gloe]

I agree with you that we have different problems now, but the funnymentals don't always matter in trading. We are still in an uptrend off the March lows. The SPX has gotten above its 200 day SMA. Soon, the 50 will cross up above the 200 and everyone will prclaim the "golden cross" has arrived, no more bear market, and that will sustain us for a while longer.

In 2003, everyone was still waiting for the next shoe to drop and it never dropped. The market went up relentlessly from the March bottom. I remember this so well, like it was yesterday. Everyone shaking their heads "where did that rally come from?" Day after day. Just like now. Occasional sell offs that got the bears back in, only to get squashed again on the next short squeeze. This happens often enough, like it has been happening, and shorts will get out of their positions as soon as the price stabilizes, which just leads to more short covering driven rallies. On and on . . .

JMVHO

gloe