One Day Bull Trap Indeed...

The rally yesterday turned out to be the classic one day bull trap I talked about yesterday indeed. No surprises there as the Dow made another new low for this crisis by dropping over 280 points. Now, what happened to all that "China Stimulus Rally"? That's the problem with the major wires... they tend to simply look for news that corresponds with what the market is doing at that time and make it sound like something real is cooking up. One look at the charts reveals it all. That being said, the Dow is indeed in a deep oversold condition right now and totally due for a slight pullup. Since there are no clear support levels in sight, we will have to monitor and make assessments as it goes. Yes, this final capitulation is not going to end until some real damage have been done and then it will all get better. In fact, today's Jobless claims and factory orders (see economic calendar) did beat expectation even though they remain recessionary numbers. Tomorrow's unemployment rate is going to be the focus of all investors with consensus calling for a higher 7.9%. From the state of the economy right now, it truly is hard to expect a lower number but if it really does happen, this stock market crash could turn around as it would mark last month's 7.6% as the peak unemployment rate (hopefully if it doesn't get far worse next month).