STEALTH CAPITULATION

The most frustrating aspect of this market is that it lacks intensity on both rally and decline sides, hence the "Dove Rally" earlier this year and "Stealth Capitulation" right now (several times I might add). Without intensity, the reversal tends not to occur and generally not as strong as expected. The action this morning is a perfect illustration. The futures seemed to indicate a potential waterfall event this morning. While it was no doubt ugly, there's no intensity on the selling side, even on the tech names, and the reversal, which appears to occur right this moment, is also slow and uninspiring. Without a intensive capitulation, neither bulls, nor bears can claim this market.