7 “Saves” in 7 Months: A Market Going Nowhere Fast, by Charles Hugh Smith

From Charles Hugh Smith at oftwominds.com:

Can markets be saved an eighth time, a ninth time, a tenth time this year? How about next year?

What do we make of a stock market that’s been “saved” seven times in a mere seven months? Saved from what, you ask? Saved from rolling over, of course; after six years of upside, the current uptrend is getting long in tooth, and evidence of global recession is mounting.

What’s “saved” the market seven times in seven months? The usual burps of hot air: the Federal Reserve issued more mewlings (zero rates forever), Greece was “saved” again, China’s crumbling stock bubble was “saved” again, and so on.

The problem for bulls is they keep hitting their head on the ceiling after every “save”: instead of running to new highs in an extension of the six-year uptrend, the S&P 500 reverses once it reaches the narrow band of recent highs.

To continue reading: 7 “Saves” in 7 Months