Technically view of this rally may reach

9/28/08

As everyone can see, how nicely the market got bounce from the channel line. It is not luck. It is the art of Technical Analysis and why it works if use it in corrective and effective way. Now, if this rescue plan get approve, the most possible mark would be the upper channel line.
Do not give me wrong that it will stop there and not going to break above it. It is just very likely it will get huge resistance if this rally bring us there.
I have a though to share here. Yes, we could get a really good rally or even break the upper channel line with the rescue plan works and the election is going for the rest of year. But, I suspect that once the rally end ( the hope of getting us out of the wood ) gone, the realistic condition( means economic condition) will drag us down again and most likely even lower. Simple historic point of view ( fundamental or technical ), stock markets' correction usually is lasting longer than one year. So, short term trading is in play. Long term buying is very selective. There are few banking stocks good to jump in now since those stock charts are looking technically good. I am not telling which are those here. Let see how this rally goes.