Into a New Week

 Five and a half hours away from overnight futures trading ... 




 Have we been too hard on our bearish friends of late?

 Probably, but it's time we took a look at the bear's side of the debate.

 This will strictly be a technical argument. There is no point in bringing up fundamentals or the fundamentalists who bring up fundamentals (they've been so wrong over the last three years, after all), and besides, you can always check in regularly to their websites and keep up with whatever nasty thing they have to say about the economy and the plight of the world any time you want.

 As for us, we'll leave the chest-pounding to those gorilla fundamentalist/economist types who surely must struggle emotionally every single day with their accusations of "market interference" even though most of them likely studied (and agreed with) the theories of an economist named John Maynard Keynes(who are we kidding? They were a bunch of blind, easily influenced kids at the time). 

 In a nutshell, Keynes said "interference" was an, "okay," thing to do and that sometimes the government has to get involved.

An ostentatious display from a stock market gorilla

 At any rate, every so often bearish charts have actually worked over the past three years, and there are some things that require our attention.

The Dow Transport

All is not perfect in LaLa Land

 Banks, the Tech sector, the Dow Industrials, the SPX ... all are trading well above their 50 DMA's and will eventually have to move back down to them on a reversal or trade sideways and allow the 50 DMA to catch up. We could easily see the latter of the two options.

 Friday ended with a buying spree on heavy volume in the last hour. It will be up to the overnight futures market to generate a continuation of that or we may finally see a reversal as we head into a new week.

 There have been several times along the way where I warned that it looked as though the we were about to hit a stalling point and perhaps reverse and the markets fooled me each time.

 There aren't any real signs that a reversal is inevitable and anyone considering going short (or is already short) should be cautious. This market hasn't been very kind to short sellers lately and that trend could easily continue. 

Always perform your own due diligence. These are only my opinions.