The Bear Market rally arrived as expected.  I feel that we could pause or slow down for a few sessions before continuing up to challenge 780-800 in the SPX.  We need more participation in this move.  When greed begins to outweigh fear, then new money will once again be put at risk in the market.  When this happens there could be another strong leg up.  Hopefully, we can keep the trend going until others decide to join the party.

Losses continued to extend themselves Monday.  However, today’s candle was an inverted hammer which followed a high wave Harami Cross from Friday’s action.  This was confirmation that the Bears were running out of steam.  MRK acquired SGP and AMZN received an upgrade to buy as the DOW slipped another 80 points.

Turnaround Tuesday!!  The market impressed today, rallying 379 points in the DOW!  Vikram Pandit, CITI CEO announced in the morning that the bank was profitable for the first two months of 2009.  Ben Bernanke mentioned today that the uptick rule may have curbed some of the recent and vicious short selling pressure had the rule been in effect.  He also seemed to support some change to Mark to Market accounting and predicted a possible end to the recession by the end of the year with profit in 2010.

Wednesday, most were expecting selling into Tuesday’s awesome performance.  The Bears and Bulls played “Tug of War” all day long resulting in lack of follow through on yesterday’s move.  The good news is that we finished in the green with a 4 point gain in the DOW.

Wednesday, GE was downgraded primarily due to their Finance Division, GE Capital.  However, the downgrade was not as severe as first expected.  GM indicated it didn’t need as much cash to stay afloat for the time being.  Finally, Ken Lewis, CEO of BAC announced the banking giant had posted a profit so far this year.  It all added up to a gain of 240 points in the DOW continuing a positive three day run.

 The week ended Friday on the upside despite a somewhat tentative performance.  Technically, the indexes have reached areas of resistance as volume has been diminishing.  It may be a harbinger of the market taking a breather.  Expect sideways trading and maybe even a small pullback before once again challenging higher levels.

Week over week, the Market registered its’ best gains since November 2008 with the DOW up 597 points, the SPX better by 74 and the COMPQ positive by 138.

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