Looking at the strong rally I am now wondering if what we saw here was SHORT COVERING in a panic.
Look at the chart. The SP500 was in a down trend, just touching the down trend line. There was a Descending Triangle Forming. All the calling for shorts. I think the news on JP and Intel, and maybe some of that automated-scam-trading that Mark talked about forced the market up, then SHORTS wanting out, drove it up higher. I looked at many indexes and for the life of me this one shot out of no where.
It sure looked like it was going down. Still with the volume as light as it was on the way up it still seemed like people were covering shorts in a panic.
