When Will This End

This relief bear market rally has been very frustrating to the bears and agonizing to those sitting on the sideline. When this rally started, most market participants were looking for the DJI to rally back to 7100 and at most back to the Nov 2008 low in the 7500 range. Instead, the DJI has surpassed the 7500 level and it is now approaching 8000. Every time the bears call for a pullback, the market continue to move higher to squeeze the shorts and antagonize the non-believers. As this rally continue, more and more talking heads are starting to think this rally might be more than a bear market rally and questioning when this rally will end. It is precisely this change in sentiments will bring this rally to an end.

Here are the latest charts with updated commentary:







I believe this rally won't come to an end until the DJI breaks the 8000 level and move toward the trendline resistance level around 8300-8400, and the SP500 tested the 870 level with the Nasdaq 100 moving up to the 1400 level. Some of the movers that will help propel the market to these levels will be the tech heavy weights such as HPQ, AAPL, INTC, CSCO and AMAT.











I'll be watching closely for the end of this rally and start locking in on some of the profits from the longs. when this rally has ended, the next downward move for the DJI could be the bottom everyone was looking for.