Friday, October 7, 2011

Tuesday Market

After the intense selling Monday, conditions were ripe for a snap-back rally today. We finally did see a solid upside move in the final 45 minutes of trading, but it sure wasn't easy for the bulls. The morning bounce fizzled at midday on continued chaos in Europe and then AAPL surprised a lot of folks when it didn't announce the much-anticipated iPhone 5.

Just when it looked like we were going to take out the opening lows, we had some well-timed Europe-is-saved news. The machines kicked in and the squeeze was on. The market blasted straight up and caught just about everyone by surprise. Many traders are saying that it was some of the craziest action they have ever seen.

The big question now is whether this very chaotic action today changes anything. Is the bottom now in? Are we ready to rally into the end of the year?