What to Expect Monday...

It looks like we are back to the weak insipid choppy market conditions as we continue to work out a bottom.  On Friday markets continued the pullback that began on Thursday and the 50 day moving average proved to be resistance for the majority of the indexes.  The Obama Administration will be announcing its plans for dealing with the toxic assets on the bank balance sheets.  The hope is, this will resolve the issue enough to loosen up the tight credit markets and gets money flowing.  According to the Wall Street Journal, Suncor (SU) and PetroCanada will be merging.  That should lead to some sort of market reaction.  After a couple of days of improving institutional numbers, it looks like the institutions are back on the sidelines in anticipation of more news.

As of this writing, futures are positive and the DAX is positive, indicating a positive open.  The market condition scans are showing no strong bias.  The market bias indicators are showing a more bullish bias.  Given this, expect another choppy volatile day. 

Index	Change	%Change	Level	Phase
TSX	-184.14	-2.12%	8506.35	Recovery
DJIA	-122.42	-1.65%	7278.38	Bearish
Nasdaq	-26.21	-1.77%	1457.27	Recovery
SP 500	-15.50	-1.98%	768.54	Bearish
Russell 2000	-13.02	-3.15%	400.11	Bearish
NYSE	-105.08	-2.13%	4832.14	Bearish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: Weak

Primary Trend: Remains down

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