To gain an edge, this is what you need to know now.

Rally Attempt Fails

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

  • The chart shows when the stops of gullible investors were taken out.  Please read yesterday’s Afternoon Capsule for details.
  • The chart shows that the stock market behaved as it typically does after stops of gullible investors are taken out.
  • The chart shows that the rally attempt failed on bad economic data of two PMI’s and New Home Sales.