MORE STRETCH

Here we go again- the fish looking for capitulation- the SPX about 9% below its SMA 50- 1365 V. the close of 1252- pretty pretty far stretched- note that at the January bottom 1445 V. 1310 or also about 9%- so we will see.

Doug Kass at realmoney.com with some interesting tidbits this morning:

One would think that a tradable bottom is close at hand based on the absence of stress in many of the classic credit market indicators, an inflating negativity bubble (oscillators are moving into deep oversolds, the five-week moving average of advancing stocks is at the lowest level since 2002, Lowry's selling/buying pressure is at an extreme, Investors Intelligence's market letter bears at 44.8% is at the highest reading in 12 years, AAII bears are double bulls similar to prior trading lows, Ed Hyman's ISI hedge fund survey reveals a lowly 45% net long exposure, expanding put/call ratios, etc.), the general lowering of profit expectations from even the most bullish cabal, and the speed and magnitude of the recent decline. Thin-reed indicators out of the media also signal the possibility of a rally (e.g., Barron's bear cover this weekend and the somber preoccupation with a 20% DJIA drop as a tipping off point to a bear market is the polar opposite of CNBC's DJIA 14,000 celebrations).

Time will tell but I think Dougie has it right this time - even though he was a bit early on his call on the financials.