SPY has completed the 50% price retracement, when measuring from the January high to the recent low. The time for this retracement isn't up yet, another week or so, would be my expectation and then another leg down.
The Fed and Treasury might have really burned some shorts by making some key announcements when they did. Some would say it is on purpose, some would say the powers that be aren't that smart.
The announcement of the $300 billion buy into Treasuries just after SPY completed the trip to the price target and a lot of technically oriented shorts got in. The unveiling of the new asset plan over the weekend after option expiration had the potential to do a lot of financial damage to position traders that were short.
Some might call that blatant manipulation, some might call it smart tactics. Whatever, traders need to stay on their toes, no telling what other surprises they have up their sleeves.
The market is moving too fast for me to get a clear read. Like I wrote at the beginning of this entry, perhaps in a week or so, the water will be clearer.
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