The final hour was mixed

With Friday's being so volatile near the closing recently everyone was expecting another crazy ride. But today's close was uniquely different. And here is why I say this.

With the huge number of the short positions that are in place in so many stocks the lack of a huge rally in the last hour tells me that there are a lot of shorts that are still being held. It is obvious that there was a good amount of shorts that were covered throughout the day but the lack of a huge volume rally in the last hour signals that many shorts are still tucked away. Now remember what I said earlier today. If there are still questions on the minds of the money movers in the markets then they are going into the weekend by sitting on the fence. They are holding some shorts and at the same time holding some longs. They have their bases covered in anticipation of any news over the weekend and will be positioned to take advantage of a move in either direction on Monday.

The lack of a big volume close also tells me that the injection of money by the Feds into the market today is being second guessed as what will be coming next. With the Fed making 3 injections today (which is unprecedented) there are suspicions on the minds of the big money as to what does the Feds know that maybe the markets don't yet. Did the Fed inject that much to provide some calming to the markets only or are they now seeing some financial data that is akin to taking antibiotics before you get sick?

These reasons I feel is why we did not see a big volume rally into the close. There is still too much unknown and a fear of "what will happen next" on the minds of many.

The S&P 500 did close above the important 1440 level which keeps the market alive to fight another day.

Minutes after the markets closed Bloomberg reported that Goldman Sachs (GS) 'Global Alpha Fund' has lost 26% of it's value in 2007.

The current RebelTrader Swing trades are still doing good in spite of this market. A short leash is still the standing instructions for these swing trades. In Sunday night's newsletter I will provide more details of the swing trades and watch list.

Tonight some market index charts will be posted. Have a good evening and see you all later.