End of the Day is Very Telling

After watching the market since my last post, I have become less enthusiastic about the action I'm seeing. There have been some pretty violent downswings (including one now) in the broad market and a lot of stocks have disinflated (ie AAPL, the RTH, and GS) harshly. I don't like to see gains fade like this in to the afternoon. It leads me to think that this action is the result of a bout of short covering and is not ultimately sustainable.


On a side note, USO lost some of its momentum today, but is still above its 50 sma. Helene Meisler posted a free article on thestreet.com that looks at the move in crude and where it's headed from here. I tend to agree with her, as I pointed out in my last post. The jump in the past few days really looks quite different than previous action. That could point to higher oil and a breakout to the upside. Here's the link to the article: http://www.thestreet.com/story/10403029/1/where-are-the-cries-for-100-oil.html