Nothing seems to be going right for the bulls right now. The DJI closes at 14000 less than a month ago and turns south almost immediately. Then the sub-prime contagion spoils everything by forcing instituions to actually come to terms with the concept of market value. There are two kinds of market value. The first market value is made up by a wall street hedgefund guy amassing a large positions so the management fee is large enough so he can buy something really big. The second market value is the price the wall street guy receives getting out of all those losing trades before the market value of his positions are just a bit bigger than zero.
The new lows for the move in the indexes is led by SP500 with DJI and ND holding up much better. The bears would like a spike lower to break away from expanded ranges built from August 1st. The best friend the bull has is end of month trade activity which will look for values created by the break.
