via StockCharts.com
Click on the chart, it should be prettier. Volume was the highest since last August on this chart and since May 2009 in reality. If you imagine the trendline between the Feb low at 6900 and the April 1st low you can see that we decisively broke the backbone of the advance on heavy volume. All long equity positions should be liquidated and shorts should be taken on bulges according to Mr. Wyckoff.You should assume that the hypodermic advance last week and the high volume narrow range day were all managed by people who knew about the Goldman announcement. Similarly, the government made this public on options expiration day to inflict as much damage on Wall Street as possible. Somehow the institutions that were so important that the government could spend between 2 and 23 trillion dollars to bail them out can now be thrown to the lawyers to be chewed and devoured. Politics does make strange and strangely estranged bedfellows.
