The failed breakout that Stewart spoke of has been confirmed and the S&P 500 chart has rapidly devolved into a full scale breakdown with heavy volume to confirm. I've always said that from failed moves come fast moves and this is certainly no exception. The VIX is still far from signaling a real bottom (needs to jump from 24 to over 30) but the market is getting oversold on the short term time frame. However, I think that the potential for a relief rally is far outweighed by the likelyhood of a real devaluation of stocks in the coming weeks. Deflation is upon us! More later.
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