Seems that the much ballyhooed stock market rally, the one that was supposed to foreshadow the imminent recovery, has likely seen better days. While the press and assortedly coiffed CNBC darlings cooed on and on about it’s amazing strength, those whose market experience extends anywhere BEYOND the last few years know it was just another classic “sucker’s rally.”
It was just last week that I was drawing attention to the fact that the S&P 500 finally managed to penetrate the 200-day moving day average. Oh what a difference a day makes. The whole session turned out to be a classic failure with the index failing to follow-through beyond the average and also failing to draw in any buying above the early December high. And all that happening just above 1175, a level that The Sovereign Strategist identified months ago as critical resistance, likely to give the market a hard time.