Smelling salts, maybe some honey laced with a little steroids, something.... Or perhaps a "strengthening" US Dollar**. But besides some macroeconomic trends that are turning against the bulls currently, the fact that the move on the SPX and INDU are non-confirmed by the COMPQ and NDX (the leaders of the rally off the bottom), should give them pause
**---- DISCLAIMER: binve IS A LONG TERM DOLLAR BEAR ------
Short term is all noise. And the current dollar weakness is fueling the equity rally. Long term, equities will go down (due to poor fundamentals) and the dollar will go down (due to confidence crisis) together (such as 2007-2008 and numerous other occasions)
Take a look at the charts below. All of the subsequent rally since Aug 4 as been outside the 2-4 channel of Wave A. Couple that with an examination of the NDX (which is "way off the reservation" with regards to the channel), this rally should make any honest trader deeply suspicious of this rally
The Dollar is putting in a very convincing short term bottom here. 77.5 on the USDX is major support. If that gave way, things would have turned really ugly really quick (for the dollar). But I made a double bottom around 77.5-77.4 and also ended a 5-wave run. Condition look ripe for a bullish correction in the dollar that should last for a few weeks. Enough to throw some ice-water on this equity rally.