Buyers threw in the towel yesterday after failing in the early going to exceed any peaks recorded a day earlier on the way down. The futures traced out a couple of purposeful humps in the process, lending weight to the suspicion that DaBoyz were attempting to distribute stocks into weakness. This will always be a delicate task, but their modest success at it on Wednesday suggests they intend to take stocks lower in the days ahead. Bears would get a breather, but they should be aware that any weakness is to be presumed corrective, since it will be following an ‘impulsive’ peak that exceeded the 2011.75 recovery high recorded on September 17. That made the entire rally from the 1861.00 low on September 29 bullishly impulsive. As such, any pullback that holds above that low and gives way to a follow-through rally could provide an excellent opportunity to get short with relatively little risk. At the very least, it can help us determine whether the bull market is dead or dying. Stay tuned for further guidance.
