The market dropped and popped at the end of the day Monday (seems there was a bit of short covering!) The rumor fueling the End of Day excitement was that Italy had found a source of financing in China! As a reason for the end of day rally that seems a bit lame, but none the less, that was the word on the street. The good news is that we ended the day over 11,000 and the candlestick indicates we should have a strong move up Tuesday. The emphasis on "should"! Perhaps that thread is actually a steel cable?
Today we need a strong upside follow thru to confirm the up move to the top of the channel. The bear flag is still in effect, the downside bias is still hanging overhead, and the outrageous volitility of the last 6 weeks continues.
Note the temporary change in the graph below. My usual program is being a bit tempermental!
Current Market Trends
Long Term - Sideways with down bias
Medium Term - Sideways with down bias
Short Term - Up (But watch for potential reversals)
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