Dead-cat bounce fizzles, U.S. benchmarks violate support

[marmar]

(MarketWatch) The U.S. markets’ recovery attempt has fizzled, and the major benchmarks are once again traversing less-charted territory.

Consider that each index has violated first support, strengthening an already bearish longer-term technical backdrop.





Before detailing the U.S. markets’ wider view, the S&P 500’s SPX, -2.59% hourly chart highlights the past two weeks.

As illustrated, the S&P has failed to sustain its rally attempt atop the 1,971 mark, detailed last week. (The August weekly closing low).

The S&P closed Monday at 1,972, and Tuesday’s early downturn places it in less-charted territory. ...................(more)

http://www.marketwatch.com/story/dead-cat-bounce-fizzles-us-benchmarks-violate-support-2015-09-01-121031120

[Xipe Totec]

1. Mixing metaphors here. How exactly does a dead cat bounce fizzle? By failing to fall back to earth?

[marmar]

2. Can't answer. I don't write Market Watch's headlines. :)

[Purveyor]

3. In order to have a bounce you must first have a bottom. Don't think we are there yet. eom

[leveymg]

4. A trillion lost here, a trillion there, pretty soon it begins to be real people's money lost.

Inevitably the bubbles pop and the bouncing stops for a while.

[Warpy]

5. In the meantime, panicky people are flooding back to commodities

Good luck with that one, folks, especially those of you blowing the retirement boodle on oil futures. I guess you haven't got the news about the worldwide oil glut, yet, and with Iran yet to enter the larger market.

Markets usually overcorrect when a bubble pops and this bubble has been a dilly. I don't think the correction itself is over yet, the overcorrection yet to come.

I'll take the income, thanks, instead of panicking about the per share value dropping. I'm way past the stage of leveraging twice my net worth to buy some heap of masonry with which to impress my betters, who are generally not interested.

YMMV, of course.