All of sudden on Friday, the talking heads on CNBC were speculating on a Summer Rally. That struck me as odd. Here we are “enjoying” a Summer Slaughter, and these jokers were all giddy? Something is up. Did the hedge funds that write CNBC’s talking points and rumors put on long positions and have now sent out the propaganda team to talk their book? Or were they already long and are now hoping that the CNBC spin will help them weasel out of their positions?
At 7:58pm EST, on Sunday night, the SPX futures went into a ten-point nose dive. That sort of sharp move on a Sunday night is not a bullish sign. It means that, even if the market recovers, things are still volatile and there is no steady bid under the market.