Market Recap - An Epic Day of Blunted Demur

Today was a day that will soon not be remembered. It was an epic of beaten warriors strewn across the field of battle, licking their wounds. The field swathed with the armament and spilt blood of near do wells, all but beaten down, but can't be, no, won't allow themselves to be finished off.

The last few sessions the Bulls were on the precipice of victory, with the right shoulder, of an inverse head and shoulder pattern, nearly complete. Then the great behemoth, General Electric, tells of horrifying conditions that swept the markets like a wildfire, sucking the wind and the ground out from under the Bulls.

Today, the battle field was still, as both the Bulls and Bears wandered in a cloud of confusion. The Bears can't understand what is keeping the Bulls afoot, after they inflicted pounding after pounding. The Bulls beaten down, but not out, knowing they have exhausted their supplies, and sensing the anguish of the Bears.

The market is in an untenable position where it is extremely oversold on the 60 minute charts. Which under normal circumstances would cause prices to rebound in following trading days, especially after being dragged down so viciously. But the Bulls cannot muster the energy to move upward. They know in their hearts of hearts that all the bad news is already built in to the market, yet they keep getting pounded with a never-ending stream of disappointments. And worse yet, on the horizon is earnings season. The fear is that the worst is yet to come.

As far as the technicals of the non-epic day goes, there was little volume. Only 1.6 billion share on the Naz, not enough to get any buying momentum going, 2 to 1 in favor of the down side. And 18 decliners to every 10 advancers. None of the markets were able to move up to the 200 day moving averages, which further displayed how weak this market is.

To ad to the misery, financial markets were breaking down, with ugliness spewing from Wachovia and Wells Fargo. There were some sectors that were performing well, namely agriculture and energy. And AAPL showed some initial gusto, taking back a few morsels, only to retreat some, ending up holding on to some measly crumbs. That's a wrap.

-zach bass