Joe...
I think we did not have the overt "magic" buying today simply because it was a day for support, not driving up the market - exactly like Friday afternoon was. If there was a goal for today, it was apparently to hold 1600 NAZ and waves of successive large buy bids came into the important index and leading tech stocks (the usual suspects) each time we got to that level, especially going into the close.
If the market is to go down from here into a significant correction, more concerted and sustained selling will have to come in than we saw today - AG easily handled today's selling and just as he has done so many times, this will just be another short, shallow correction underway unless the selling intensity picks up. I tend to think we will go somewhat lower and break the 1600 level over the next few days as the overbought conditions get worked off and AG's main job will be to keep the pace of decline slow, so that downside momentum is not allowed to develop. I was looking for lows of 1555-1565 NAZ/945-950 SPX being possible, although we may not get that low.
Unless enough selling develops to cause the markets to drop hard here (doubtful) the quality of the ensuing rally will tell us more than the decline has so far. It seems inevitable that AG will do whatever it takes to turn the first selloff back to the upside, but that does not mean he will be able to get the main rally restarted.
mlsoft
AI
