Daily Market Update and Timing

Turns out we just had a nice bear market rally, but the overall sideways trend remains unchanged.  The big news over the weekend is the resignation of Rick Wagoner, CEO of General Motors (GM), due to the failure of the current plan.  The Obama Administration has given GM another 60 days to come up with a new plan.  The Administration has also given Chrysler another 30 days to solidify a deal with Fiat.

The rally finally started to pullback on Friday along with gold, silver and oil.  Gold, as tracked by GLD, the ETF, has come back to to its 50 day moving average.  This will be the fourth test of this key average and it will be interesting to see if it holds here.  On the chart for GLD, we see the moving averages flattening out and the price action for the last 30 days for both GLD and SLV (the silver ETF) has been sideways.  An interesting note is that research done by Ken Fischer of Fischer Investments, indicates that contrary to popular belief, gold is not a good indicator or predictor of inflation. 

As of this writing, futures are negative and the DAX is negative, indicating a down open.    Market condition scans are neutral across the board.   Market bias indicators are also neutral.  It should be noted that all the indices are at the top of their channels combined with overbought stochastics which suggests further downside.  Today’s market action is likely to be driven by news.

Index	Change	%Change	Level	Phase
TSX	-174.44	-1.94%	8821.06	Recovery
DJIA	-148.38	-1.87%	7776.18	Recovery
Nasdaq	-41.80	-2.63%	1545.20	Recovery
SP 500	-16.92	-2.03%	815.94	Recovery
Russell 2000	-16.29	-3.66%	429.00	Recovery
NYSE	-133.89	-2.56%	5096.64	Recovery

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: Weak

 Primary Trend: Remains down

Sector	Phase
Consumer Staples	Recovery
Healthcare	Bearish
Technology	Recovery
Utilities	Bearish
Energy	Recovery
Financials	Recovery
Industrials	Recovery
Materials	Recovery
Consumer Discretionary	Recovery

Source: Telechart