Are bears scrambling

Posted by downtowntrader | 3/21/2007 11:19:00 PM | 0 comments »

I mentioned yesterday how the ingredients were there for a pivotal move in either direction, and it looks like the path of least resistance was up. When the fed minutes were first released, I thought it might be a headfake higher, but the rally was persistent and strong. In the end, I think bears had to scramble to cover some shorts and bulls pressed the action. The fact that there has been such a high level of anxiety and bearishness led me to believe that further strength was possible. However, I am of the opinion that a top is in the process of being formed. Tops usually don't occur out of the blue, tops are usually grinded out. Today could be the start of a strong rally, or it could be reversed in a few days. Ultimately, we may just be entering a difficult stretch, as bulls and bears will probably wage a battle in this area as either a top is formed, or a strong new base is. As always, mother market has surprises in store and it makes for interesting observation. I won't be trading much the next couple of days, so no new charts tonight.

Good Luck,