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The bullish push back up from last week's damage continues. At this point, I could go one of two ways. One way is to say that the recovery is over and that we're about to re-enter another bearish leg. Another way is to say there are still several hundred Dow points to go before we re-enter such a leg. Apparently tomorrow morning's economic reports are going to have a lot to do with this.

As for today, the Dow was firm most of the day, but just as with yesterday, it gave up some steam near the end.


The thing is, at this point, just about any chart could be subjected to completely valid bullish or bearish arguments. So just to keep everyone confused, I'm going to show you a few index charts and say one or two bullish and bearish things about each one. First, here's the Russell 2000 on a daily basis:


Bullish Conclusions: There's free sailing until $795 before two simultaneous Fib retracements are reached. And there is a huge amount of room between the current price levels and the underside of that major trendline that was broken - - up to about $810.

Bearish Conclusions: The stock bounced perfectly off its 38.2% retracement today. It showed a lot of strength but couldn't keep it up. It's a nice shooting star pattern (albeit in the middle of a chart).

Now here is the same index on a minute bar basis:


Bullish Conclusions: Largely the same as above. You can see the Fib lines more clearly.

Bearish Conclusions: The astonishing thing to me is how perfectly it obeyed the Fib. The 38.2% retracement level is at 786.78. The high today was 786.75. That's only 00.03 points! Absolutely amazing!

Here is the S&P 500 on a minute bar basis:


Bullish Conclusions: See that blue line just beneath the current prices? That's a pretty major supporting line. If we rally tomorrow, that line is going to hold strong as major support for a while.

Bearish Conclusions: This also bounced right off the 38.2% retracement.

And here is the same index with daily bars:


Bullish Conclusions: This offers a better view of that huge trendline that used to be resistance but is now support.

Bearish Conclusions: That same line was penetrated, albeit just a little bit, and there is a huge empty space beneath the line representing how far this sucker could fall.

As for the $VIX, I feel pretty good about how much it has fallen. When it was about 20, I made a mental note that it should get down to about 13 to get the hot air out. It has done so. If today is another strong up today, this could lose a couple more points.


AMLN looks like it's close to breaking its huge topping pattern.


Chicago Mercantile (CME) was up a bit today, so my puts suffered some, but I still love this chart. Satan himself continues to speak through this blog - note the eerie point change today.


And what can you say about a stock like Google which actually falls on such a strong up day. Something tells me the leadership days of this stock are a thing of the past.


Tomorrow should be the most interesting day of the week. Let's hope it's interesting in a good way. See you then.