The pickup of call buying or some last minute buying in the last few days had prevented a true washout bottom. The side ways action is trying to slowly reverse the short term downtrend while the intermediate trend had refused to turn down. However, we have expansion both in new highs and lows in the index; this often foreshadows some turbulence in the near future. The Fed is set to make its interest rate announcement next Wednesday and may hold us up for a bit in the poor news flow. This would probably create a choppy market as we wait for Ben and the typical month end game.
