Dennis Slothower of Stealth Stocks Daily explicitly cited Wednesday's last-hour rescue rally as cause for caution.
He wrote: "The intervention we are seeing in the markets right now is blatant and strong -- apparently hoping to convince J.Q. Public that the train is leaving the station.
There is a strong and concerted effort by the Fed, the administration and their cooperatives to paint this tape higher and higher, without any pull back.
He continued: "The normal process of backing and filling has not been allowed to take a normal course, possibly out of fear that it will get out of hand and seriously challenge the new bear market low set on March 6th -- just a few weeks ago."
Slothower's point: "This kind of intervention often ends badly though, as no selling relief leads to a pressure point where eventual selling erupts into a volatile profit taking decline over a day or two that can quickly remove weeks of gains.""
i can't get over what a momment of truth we are at tommorrow...
on the one hand just about every technical indicator is on the brink of breaking out or breaking down.
then you have the M2M meeting and sorts of other RUMORS (only rumors mind you).
and finally you have a overall oversold state in a new bullish mindset...this is fireworks, man...fireworks...
and no one has a clue which way we go...hahah..
I'm short, but I would be lying if I told you I was comfortable.
WASHINGTON (AP) -- Hopes that the economy may be poised for a recovery got a splash of reality Thursday: The unemployment rolls are still getting bigger as the recession maintains its grip.
AP - A line of job applicants snakes through a ropeline to attend the CUNY Big Apple Job Fair Friday, ...
For the 10th week in a row, the number of people receiving jobless benefits grew. It now stands at nearly 5.6 million, the government said -- an indication that the labor market is still grim.
New claims for unemployment benefits rose again as well, to a seasonally adjusted 652,000, up from 644,000 the week before. The government also said the economy shrank at a 6.3 percent annual clip in the fourth quarter, slightly faster than its previous estimate.
"There is no sign of recovery here, and claims are usually one of the very first numbers to turn," Ian Shepherdson, chief U.S. economist at High Frequency Economics, wrote in a client note.
The total number of people claiming benefits jumped to 5.56 million, worse than economists' projections of 5.48 million, and setting a record for the ninth week in a row.