Bounce continued on a good jobs number and hit the 50 day moving average premarket. Europe appears set to recapitalize the most troubled banks and backstop the sector, but there was a race to downgrade various Europe country debts this morning and that added to the morning sell off. Bulls were putting together a late day run and ran out of gas at the finish line. This was not surprising, given the huge rally since Tuesday’s technical bullish reversal on a monster bullish engulfing candle. 1150 to 1155 in the S&P 500 had morphed into interesting support in the last two days. In the next four to seven sessions if we can get bit more back and fill then a follow-through session with volume to confirm the fledgling rally, we may finally be breaking the trend of “lower highs.”
