Manipulative Machinations

This market sure is putting on the moves to try and suck in every last speculator, as we all eagerly await more clarity on the issue of whether this tape is bottoming for even a respite from the downtrend, or instead is gearing up for a washout of epic proportions. 

What we do know is that the VIX is resisting collapse, staying noticeably firm even as the Dow surged well over 200-points this morning after a shaky open. We also know that Facebook earnings are coming up tonight, among many other prominent firms like this week like Apple on Thursday (they had an event today), which could also sway the tape. And the cherry on top would be the jobs number on Friday leading up to the midterm elections early next week. 

For now, pursuant to a chart I posted both for Members and on my main Twitter account earlier, the $267 level on SPY (the S&P's ETF) is acting like an initial brick wall after a spirited rally both yesterday into the bell and parts of this morning's action. 

Should bulls remount $267 on SPY my posture would at least turn more neutral in the near-term, as the washout scenario would presumably take a hit in favor of a more standard relief rally.

First things first, though, and bulls need to prove that they can hang onto bounces with all of the major averages still operating below declining 200-day moving averages and the market in general sporting manipulative machinations far more frequently than anything we have seen in several quarters, at least.