Not that it did my stuff any good, but once again the bulls show up in the final hour of trading and squeeze the shorts just when things were looking particularly precarious. Breadth didn't improve all that much when we bounced, and that made it look like program buying, but the tenacity of the dip-buying, coupled with the tendency for big spikes in the final hour, is going to make any bears uncomfortable very fast.
Technically, the S&P 500 recovered its breakout level of 931 at the close, but even before the bounce, the correction has been shallow and on lighter volume. The charts were a bit toppy, and we needed a consolidation. This action is not that bad overall.
The most negative thing about today was that the biggest losers were in recent leadership groups. Energy, commodities and agriculture all saw intense selling.
The momentum didn't fail as completely as it did last time the market pulled back sharply, and that may be an indication of stronger underlying support.
These last-hour moves always feel like manipulation, but even if they are, you aren't going to make money fighting them. It certainly helped out the bullish cause today and is keeping the overall trend to the upside intact.
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