Incredible turnaround for the bulls today as they trampled the bears into utter submission. This could be a trading day that we look back on and say that this was the day when the bulls finally said “Enough!” Unfortunately, there is no way to know that in the short term.
But for the bulls to rally as strong as they did in the wake of one of the worst economic new pieces in quite some time is amazing. Because, let’s face it, banks can go out of business, so can insurance companies, among others, but if society does not have jobs (and reports continue to show this reality as steadily increasing), there is no way for the economy to function.
On the technical front, conditions are improving, but there has yet to be a breakthrough. Volume increases for the bulls are a good indication that capital is starting to pour back into the market, and with the market rallying on Friday in the wake of such horrid news, one must wonder if the true state of the economy is baked into stock prices.
Monday will be interesting to see how the market responds to Friday’s rally, and another descent rally could be the breaking point for bears.
Here’s the Nasdaq and S&P charts…
