Tuesday was called a follow-through day by Investor's Business Daily. IBD called today a follow-through day, but I am still cautious because of all the break-out failures lately. In other words, not every follow-through launches a big market rally. But no market rally has ever started without a follow-through.
Seems like we've had over 5 of those this bear market, and each of them has failed. Whipsaw City. Picking the bottom of this bear has been a losers game to date.
Positives? We seem to be hanging around the 8000 level on the DOW and in the lower-to-mid 800s on the SP500. Maybe some sort of basing action here.
I remain long and bullish. As I mentioned in The Psychology of Cutting Back, I think a lot of what's going on is emotionally driven by the media's gloomy drumbeat. I see folks with more cash in their wallets now than last year up to this Summer.
(Did someone say Summer? Summer Glau?)
Oil prices dropping like a stone. Huge impact to folks out there who drive cars. It's the stimulus package that keeps on giving.