AFTER THE REVERSAL

Friday's trading has every look of a short term climax bottom as we were staring into the abyss at 1:30pm with the dow down 170 and then came the violent turnaround that took the dow s&p and nasdaq to a higher close. Notice that while the short term uptrend has the look of being broken, the dow came down to the 2o0 day expotential moving average and bounced right off of it. The issue is whether we can get back above the uptrend line around 10,400 or so. Right now the market is in prove it to me mode.


The reversal wasnt lost on mlps but the average has been such an outperformer that it needed to get to 255 to reach its 200 day and it was no where close. It actually closed above the 89 day moving average uptrend line so to me the uptrend remains in our group. I will feel better if we can get back above 280.

Meanwhile this morning its quiet on the news front. Nothing on the upgrade downgrade list either. Stock futures are flat, energy higher, and gold higher ahead of the open. Nat gas is showing a ncie gain this morning. So im looking for followthrough to Friday to confirm the climax bottom and the end to this short term correction.

Another snowstorm looms for the northeast and mid atlantic states. Shovels are ready.