Over the past few weeks of rallying, quite a few commentators have discussed the likelihood that there would be a retest of the recent lows at 1275 - 1300 on the S&P 500. While I agree with that, I don’t agree with the add-on assumption. Many of these “technicians” go on to imply that the retest will be successful. That may happen but we have no evidence a positive result is a certainty and I prefer to let the trading patterns decide when they occur.

I am confident that there will be an attempt to program some trades and create a “double bottom” retest. This kind of “manufactured technical analysis” has been the subject of some of my recent posts so I’ll just provide a link and save the repeat about how much I disrespect this crap. Regardless, it’s too tempting for certain market participants to avoid making their own trading opportunities so I just wait for it to happen and evaluate the merits of whatever shows up.