CHOP, CHOP, CHOP - 8/13/08

The waves continue to be very choppy in the S&P. This current period is quite similar to last August in 2007. We had big thrusts up on the back of positive news on the financials, and there were calls that the BOTTOM was in. However, no thrust has any lasting power. So, we just play pinball back and forth for 20-30 points each thrust.

Jim Cramer is leading this charge of calling the BOTTOM.

Today's market fits this pattern of thrusting up for two days, and then retreating for two days. Daily ranges continue to be around 30 points in the S&P. This is a very good market to just trade the chop. The fear, of course, is that we get a break-out.

This sentiment pattern is still fitting the BULLISH mode.