After yesterdays historic up move, the indices gave back some of those gains as short term traders were able to lock in significant profits.Earnings reports are beginning to come in and we will see how the market’s react to this news. Follow the reaction closely if announcements are negative and the market reacts bullish to the news. Positive moves in face of negative news is bullish and indicates sellers are washout of the market. Volatility remains very high, this remains a day traders type market. The ranges of the 5 minutes bars of the past few days matches the daily ranges of 2004. The movement we see in 5 minutes use to take all day to achieve in 04. Thus a day worth of movement today is equivalent to 6 months of movement in 04.

Today’s market action was not much of a surprise but the level of increase certainly did. The DJ was up over 936 points; the Nasdaq was up over 194 points; and the SP-500 was up 104 pts. It was an amazing day, is the world saved?

Ok, someone take this moonshine I been sipping’ away from me because I think I am hallucinating!!Did I see the DOW down 700, eventually rallied to plus 300, only to settle down in the red -128? It seems like being down only 128 is a positive these days!In all the DOW traveled a little over 2,000 points. Unbelievable!!!The Dow plunged below the 8000 mark for the first time in five years.

At the close markets were down to their lowest levels in five years.A coordinated rate cut could not produce a rally that would hold. Concerns that a recession will be deeper than originally expected has resulted in significant fears. Today was the 6th day in a row that the major indices sold off with the DJ down 1600 points in this short period. The VIX traded at new all time highs.

After opening up 100+ points or so, the market reversed and headed south — a 600 point Dow swing and closed on the lows which is never a good sign. At this rate Wall Street will be located in Alabama if it keeps heading South at this pace.

Someone pinch me when its over!!!!