..where's the Armageddon fear

We entered June trading at around SPX 920-930 saying in DJIM #26...“Until July 13th or so, you should be drying up some powder in readiness for new stock buying.  You don’t want to be holding stocks that are losing steam or holding any losers if it takes up buying power.  You want to have cash on hand for fresh meat and /or continue for now to be very selective in buying”.  If you’ve been patient, you’ve survived 5 days of a trading wreck that took the SPX to 869 (~6% since).   Now,  that’s quick and has probably caught many a Bull and Bear by surprise.   Best outcome as it's given us an opportunity to participate in any rebound with our most playable stocks at cheaper prices,  notably the battered commods’ (if AA’s report tonight and a stabilizing oil coincide).

Yesterday‘s Journal,  “We definitely hit correction part 2 as discussed from 930-935 and are only 2% (to 869) from a standard 10% correction from 956”.

Guess what?.  We reversed today right at 869 for a 10% correction.  There’s only one thing to take from today and we pointed this out in an intraday alert heads up(1pm) just after testing this mark 30minutes earlier.  As many technical levels, including previous days 888, Golden cross, 200ma support and with the much hyped about H&S pattern slowing coming to fruition against the Bulls today,  we were ready for a shakeout of sorts once the ladder stroll came and broke 875.  But, there was one problem, there was little conviction as selling was quite orderly and stops were seemingly not getting hit because they just weren’t there.  No volume spikes!.  It was more a case of little buying than a lot of selling or most importantly shorts were not pressing fresh positions to take this market lower.  Reason we pointed this out is simply an opportunity to buy for a reversal trade may be around the corner.  The 1^st test of 869 and upside was soon negated due to AMEX`s Ceo interview on CNBC.  Once this level was tested again, we had a double bottom on the daily and traders were jumping on the opportunity.  What we got today is seemingly some breathing room with many sectors bloodied and therefore some potential to bounce into next weeks earnings true kick off.  A strong close should bring a modest gap open, it will likely seem the Bears got nowhere with so many technical levels breached so far this week if we can get and hold 'green' tomorrow.  We only think modest because many buyers still absent today will probably wait till next week.  You probably noticed not many individual stocks turned green with market by close, reason is this was driven by futures/ SPY trading.  Stocks may play catch up.

We should have a good sector or two to trade, maybe commodity and/or consumer discretionaries thanks to FDO  to start.   Still, a 'bullish' posture overall only comes at 900SPX

We noted the Bears will have little eco data additives this week to the NFP to potentially breakdown the market.  This seems to be the underlying reason for the unfolded failure today.  We`ll accept the majority Armageddon story spreading since NFP# of a recovery breakdown when/if we see more negative economic data.    As of now, we are not going to be held hostage by one US employment report (DJIM  #27) as we don't think the world economies are or should be.   Maybe some are believing the same. There was no scrambling out of the market today like in Feb-March Armageddon times.