Bear still in control

7/9/08

The market reverse the previous reversal days pattern with big bearish candlestick. The major indexes started out firm and bounced in narrow channel, tried to retest the highs on few occasions. Then it broke lower and ended up rolling down in last hour to lows for the day. The Dow was down nearly 237 points. The S&P down more than 29, and the tech down almost 60 points. As I said previous day that the reversal need follow through up days(more strength) to confirm, today it failed the test again. The Dow has been staying around 11150-11200(critical area) for the sixth days in a row. I am worried what if tomorrow this zone support got broken. Then the market would dive hard to new lows area. Next target zone would be 11000 or even down to 10750. Same sector the financial pulled down the market strength again, again and again. The market seems not too co-relate with crude oil future price. At least, not like previous few weeks as oil goes south, market goes north. Just to remember these days, one day does not make a trend reversal. Tomorrow, the central bank of england would probably hold the interest rate and it may make the USD more volatile than usual. Then GE will announced the earning before market open on Friday. Well, trend and sentiment are both still inline bearish. Let see if Bulls would show their strength tomorrow.