Avoiding rally roll-over this week is needed to build both a base and the confidence that the worst of the break is over. Indexes are trying to chip an upside to see if there is hard rally room. The DJI and NQ still remain the strongest with the SP500 virtually flat on the year and the clear leader of the darkside. While some could argue that there was an overall overstatement of the sub-prime problem, it has brought caution to managers and those who look over their shoulders. The market break has also forced the Fed to be more reactive and will certainly soften the M&A deals. There is however still tremendous amounts of money in the system looking to apply leverage to a slightly changed environment.
DJI needs move above and hold closes above 13162.
