Short scramble....

5/10/2010 ... Greece bailout cause short covering scramble .... Posted: 2010-05-10 18:52:24.0

Volatility, volatility, volatility .... Down 13% from the peak to trough and then back 10% from the trough all within the span of a few days, now if that is not the definition of volatility I don't know what is !!! That said today's action while accompanied by impressive internals is still to be considered just a one day event until we can get some follow through. Lots of traders got caught shorting the lows on Thursday and Friday thus we are viewing today’s internals with a skeptics eye as it may be just the unwinding of a lot of fast money positions from Thursday and Friday that were underwater and scared as the market jumped this morning.  The activity the last few days looks more like the volatile bottoming formation one sees after an extended decline not a three day hard sell-off. That said we need more evidence to suggest the selling has stopped and a low is in. There still remains resistance near SP 500 1,200 and again unless we can string together a few more session with positive internal skew we have to assume the intermediate term bias is still down.  Stay tuned ....