Bollinger re. slow grind down. I'm sure VAQUERO's take on this issue will be more relevant than mine, but I have a few theories of my own. As you know, for the past several months there's been extraordinarily high bullishness among investors, who still aren't convinced the indexes are in decline. They will probably keep buying at all major support levels until it becomes clear to them that they have made the wrong choice. The market manipulators undoubtedly want to drop the indexes to much lower levels, but they don't want an unruly and disorderly stampede to the exists by the bulls. There's too much at stake, both financially and politically. On the financial level, if they drop the indexes slowly they can milk the bulls (and scare out the bears at times) and thus make more money. On the political level, they want to preserve the false notion that Dubya's economic programs are succeeding and the economy is healthy. If I were in their shoes, I'd want bulls to think any correction now was just a simple dip or blip and everything was "normal." And I'd want the bears to think the same thing. Fool both sides, bull and bear, and you get them coming and going. But you can't fool them all the time, as we know from previous large sell-offs. So we endure the grind.
