THE CURSE OF THE 3 DAY RALLY!

MLPS continue to bounce up another 6 points yesterday and looking at the chart, it really doesn't look that bad. 330 on a closing basis becomes the new line in the sand as shown on the chart and we've had 2 successful trips down below 320 followed by a reversal.


The markets are taking solace from the relief rally from Europe where they, yet again, are planning to draw up a plan to plan out a way out of their mess, but before they plan to draw up a plan there is vacation and espressos. And technically there has been much talk about Tuesday's reversal.



However on closer inspection the power of that reversal might be a little less than it appears. Compare this to the reversal back in August were the dow went from 10,600 to 11,200 in one day for a 600 point turn vs Tuesday's which took us from 10,400 to about 10,800. Also the reversal came at 20% down bear market territory being achieved and there was probably a lot of program buying. Now we hear the drumbeats of that the bottom may be in. Sorry folks but im just not sold on it. We have the 34 day moving average sitting right above the dow at 11,191 and this has been a solid wall. So in my book we need to at least get above that level and stay there for a few days before we discuss a change in trend. And we have lower highs and lower lows in place so if that pattern holds..the turn should come at anytime. And we are going into a weekend. The bullish employment number this morning takes us right into resistence.

Markwest (MWE) is doing a public offering of shares and the stock is down a dollar and change. Otherwise there is no news this morning and no upgrades or downgrades. Stock futures are higher as we said with the less bad employment number. Euro markets are rallying again as they follow us. Crude is rallying with stock futures. The 10 year is back over 2%. Looks like a solid up open and then a three day weekend but stock markets are open Monday.