S&P Taking Out Support After Support On Heavy Volume; Next Level: 1,160

Tyler Durden's picture

The market is plunging with accelerating volume. This is most assuredly a victory for the bulls, as it provides tremendous double, triple and dodecatuple down opportunities for all those who believe that rosy economic data based on a flawed and soon to be thoroughly disproven theory and assorted 'seasonal adjustments' provides a sufficient due diligence replacement, when the name of the game is merely chasing momentum.

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john_connor's picture

Margin call after Margin call.  lol.

Franken Stein's picture

Topy much?

Oh wait! This market is purely liquidity driven and in no way reflects any kind of reality.


Cursive's picture

So I guess Harry Wanker should wait to buy at 1160?  No stops, baby.  This the last chance to get in.  Cramerica lives!

ZakuKommander's picture

Hmmm.  And we're not seeing blowout volumes, either, on this run to cover.  Algos readjusting?

docj's picture

Completely wild-assed guess: it's an engineered take-down (hence the low volumes, as most retail wasn't in to begin with).  Senate taking up "financial reform" (can't have any of that now, can we?).  And doesn't Turbo Tim have some more "quality" debt to float soon?

Nothing puts the Fear of Goldman into the malfunctioning hearts of our elected quite like  a nice 3% takedown of the SPX.

ZerOhead's picture

Let's hope it's an engineered takedown... the alternative is that those damn Fedco ZIRP (TM) blow-out preventers are starting to leak at the seals... better get JPM and GS to activate their algo buying programs...

Fill Baby Fill...

Cognitive Dissonance's picture

The uniquely hilarious perspective of ZerOhead on display today. I loved the trademark (TM) mark after the Fedco ZIRP BOP. Good luck at the patent office.

I've got BP on hold. Could you fabricate one up real quick and fly it down to the gulf like a good sport? We can talk compensation after you're done and it works. Come on, do it for the kids. :>)

ZerOhead's picture

OK OK... since it's for the kids.

Here's an early prototype I've been working on...


Cognitive Dissonance's picture

I haven't laughed that hard in ages. :>)

Hulk's picture

LOL, wrong direction ZerOhead, unless you working from the underside!

(which is where I like to work!)

Cognitive Dissonance's picture


Poor ZerOhead. "I've been down so long it looks like up to me."



ZakuKommander's picture

Well considered.  As the nice managing director/senior economist at JPM said Monday, senators have "an unnerving ignorance of fundamental principles of market economics," and it will soon be "time for the grownups to step in."  A little Fear goes a long way.

brooklynlou's picture

Agree. Its an engineered take down. Volume nothing like the beginning of the year.

jeff montanye's picture

why is that a sign of transience (or whatever)?  the big volume of january did not follow through.  might not the recent move on smaller volume be of more lasting duration?  might not the volume increase as the descent is extended?  was not the volume of this entire (bear market) rally small, yet the amplitude breathtaking?

dchen1's picture

sp e-mins traded 2.4mln contracts around 1:20pm, typical volume is half of that this time around..

thewhigs's picture

The volume on down days is more than the volume on up days....not too much confidence there...

JimboJammer's picture

Somebody  is  selling  Silver  and  Gold  to  cover  a  bad  bet.

Tell me lies's picture

Can't wait to see Robot's dry humpers for the day, if any.

mellmeister's picture

Yeah, paging Robo, animal spirits, dryhumpers and spooked wildebeests - this is going to be good today!

HarryWanger's picture

1175 is max pain as far as closing support goes. We're still right at that level. The market will end substantially higher from these levels. There is a lot of volume on the buy side at this support level.

Betty Swallsack's picture

1174 and sliding.  Care to revoke....rescind....jump?

HarryWanger's picture

No. This area around 1175 is rock solid as evidenced by the slide below then right back to it. As I said, we'll end much higher from here. Fundamentally, there is no reason for a strong sell off. Technically, it's doing exactly what it should. 3-5% pull backs then higher. It's been that way for quite some time now.

reading's picture

really, rock solid?  I thought 1187 was max pain?  Regardless, you just sliced through your max pain.

HarryWanger's picture

Nope. Been saying all along that 1187 was a strong level of support but max pain was the rock solid support at 1175. You may disagree with my opinions but please just check the facts before putting words in my mouth.

Internet Tough Guy's picture

Prediction: like all trolls you will disappear when proven wrong.

Prof Gulliver's picture

I love it. Let's all meet here at the corner of Harry and InternetToughGuy at the end of the day and see who's right.

Missing_Link's picture

No. This area around 1175 is rock solid as evidenced by the slide below then right back to it. As I said, we'll end much higher from here.

It closed at 1173 today.  The ending was lower, not "much higher."


Harry: Open mouth, insert foot.

pan-the-ist's picture

Not to Defend Harry, but I would hardly call that Fail.

If there is another sell off tomorrow, you can call Fail.

JGus's picture

Harry said, "We'll end much higher from here (1175)." We did, in fact, finish lower, NOT "much higher". How is that not a FAIL?

pan-the-ist's picture

lower by 2 points? Dude, please.  Granted that isn't 'much higher' but it does show that 1175 was support.  Link made it sound like the bottom was going to fall out.

JGus's picture

Okay, can we say FAIL now? Dropped down to 1158 this morning. I would count that as much LOWER than 1175.

Al Huxley's picture

Harry, did you manage to buy the S&P dip at 1171?  Now we're partying, major rally underway, we're back to 1175 already!

Simon Jester's picture

Keep up the good work Baghdad! Still living in your dad's basement? (not that that is a bad thing)

I'm almost convinced I know you from another forum. If so, you've been wrong every single step of the way with your TA. TA is dead, son, Zed's dead.

You have a somewhat sound mind, just misguided and blinded by the big money dreams of your father. Those dreams will ruin you.

pan-the-ist's picture

I think it is important to have educated contrarian opinions to help protect the site from group think.  1175 it is.

reading's picture

A few HW classics from the last week...good thing I kept my own copy as it looks like you tried to re-write history on the third comment...don't worry though I had the original handy.

by HarryWanger

on Tue, 04/27/2010 - 13:24



Thanks. I think part of the problem here is people get fixated on a topic like Greece and overlook the strength that's coming in earnings. When 3M reports such a strong Q and raises guidance, it tells you something about global growth and demand. Why people over look that, I don't know. 

Also, the psychology of the market has been to buy dips. As I type, we're zooming higher off the lows and almost back to 1200. A close above 1200 will once again put a dagger in the heart of all shorts.


by HarryWanger

on Tue, 04/27/2010 - 11:24



Yes, you will see a volume surge buying anywhere near 1200 SPX. This has been established as very strong support. It's a very easy market to trade on these dips.

reply **JUNK** (5) 


by HarryWanger

on Tue, 04/27/2010 - 12:25



1187 is maximum pain. And yes, I am buying - AAPL in particular.

reply flag as junk (1) 



Missing_Link's picture

So why does that jackhole keep posting here, now that he's been thoroughly disproven?

RichardENixon's picture

In Internet slang, a troll is someone who posts inflammatory, extraneous, or off-topic messages in an online community, such as an online discussion forum, chat room or blog, with the primary intent of provoking other users into a desired emotional response[1] or of otherwise disrupting normal on-topic discussion

Missing_Link's picture

Fascinating.  You're probably right, Richard, but he seems to so convincingly spout his nonsense, and does it with such a sense of absolute certainty that I can't help but believe that the guy actually believes the nonsense he's spouting.

BlackBeard's picture

The price is wrong BIATCH! haha!

Betty Swallsack's picture

Hmmm, 1173 and there is 1/2 hour left in the trading day. 

homersimpson's picture

Don't forget to use vaseline, Harry, if 1175 is max pain.

SWRichmond's picture

What's the bloomberg terminal say about who's buying SPY's?

truont's picture

"Sell in May; go away"

Cognitive Dissonance's picture

"....when the name of the game is merely chasing momentum."

In my second year of binge drinking along with a few classes, there was this exchange student from Sweden who shortened her very hard to pronounce name to "Momo". I and about 499 other males were always chasing that blond haired blued eyed Momo all over the place. 499 of us got no where and only one (the "one") was selected for closer inspection by Momo.

I think the momo market chasers are about to get dumped as quickly as I and the other 498 were. 

SteveNYC's picture

Do you have her number? I'm feeling lucky, my market bets are starting to really gain "momentum".

I need more asshats's picture

Marla is a far cry from a hot Swedish blond but I call her The One. The Dictator, The One....

bugs_'s picture

dodecatuple i learned something new again.