Prices will continue to try base building this week while dealing with the uneasy stories about various financial instruments. The NYTimes has a interesting article about Credit Default Swaps and the lack of transparency involved in determining a market. Even when a transaction has taken place, the coverage is much like a fire policy on a house. That is, what one thinks is covered is subject to negotiation. Federal regulation is sure to appear in some form latter this year.
Bulls have successfully fought off a few tests but will need to make new monthly highs to add proof of a bottom. Bears need lower lows on the weekly action such as the DJI has been experiencing.
