The market opened green on rumors of a bottom. Fading the gap commenced immediately after the start taking the S&P 500 to new lows. Volatility was due to the Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner testimonies before the congressional committee. Bernakle’s effect was negative while Geithner’s effect was somewhat positive ultimately starting a rally that reached the opening highs. Then news of BAC downgrade by S&P woke up the market to the reality that no real change had taken place to justify the rally. At that point price came back to the lows. The only positive aspect of the trading day is that crashing mode was halted and that after the new low only higher lows were printed. Volume was high.

Today movement cannot be defined as free falling. Other than that new lows were printed and an intra-day suckers’ rally took place. That there was a suckers’ rally reflects on the oversold condition of the market. That the rally was reversed reflects on the dire sentiment of the market.

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