Big Monday Rally
13:09 America/Los_Angeles 10 May 2010 
5 Comments
Today’s bounce back was definitely big in terms of numbers, but not in volume. Also even though it was a big gain it still wasn’t able to break through the current downtrend line. This week will be an interesting battle to say the least. The chart below shows the trendline on a 2 week chart of the SPY.
2 week chart of SPY 5-10-10
Smoke and mirrors! two weeks ago they did not have $20 billion to lend Greece now they have 1 trillion. Was Romania holding a secret rainy day stash? How do countries that owe more than they can pay, pay back even more loans? Also countries that have been financially irresponsible for decades will starting tomorrow become penny pinchers. Socialist Europe will enslave their peoples with a reduced lifestyle for decades to pay this money so bankers can get rich from them? Dont count on it.
It is all very mysterious and the results are completely unknown, but it all depends on how the market reacts to it all.
The market is still below the trend line at the end of today
The squeeze continues and we are now about to test the 50 day moving average. This will be important.
The market was rejected by the 50 Day Moving Average