Short-Covering to the Rescue

by Rick Ackerman

Index futures were glowering with menace early Tuesday morning, up slightly around 2:30 a.m. and trying to goad bears into a second day of short-covering. That is the only souce of buying power these days, unless you want to believe that the steep downturn in corporate earnings over the last couple of quarters has turned bulls feisty.

I haven’t gone too far out on the limb with today’s forecast for the E-Mini S&Ps, although there is a precise level for bears to use if they want to avoid getting impaled by yet another distributive rally.

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