Steve's Place

[DeepBlue1]

Hedgies aren't done deleveraging yet, but they've gotten to a point where they don't have to panic sell and they're doing their level best to ration their selling just enough to keep the DOW at at least the 8600ish level.

If they manage to get a rally going above that I think it'll be violent, but I doubt they'll be able to keep from selling for long. They'll want to dump into strength.

This dynamic may actually hold the market relatively stable around this level for quite some time.