Where Will It Stop

After four consecutive down days, the market finally finished in an up day with the SP500 bouncing off the 1040 level, the DJIA bounced off the 10,000 level after it has briefly went below 10,000 during intraday, the DJT bounced off near the 4000 level, the Russell 2000 bounced off near the 590 level, and the Nasdaq 100 bounced off near the 1750 level. With all these market indices bouncing off their intermediate support, does it mean this downward trend has reached its end?

Looking at the technical, today's rally is no more than an oversold rally. I do not believe these support levels will hold. The momentum appears to indicate the market is destine to fall to their June/July 2009 low. In the coming days, the market could continue to rally due to short covering and some short squeeze. After some of the shorts have been taken out, the downtrend will likely resume. In the meantime, I will continue to treat this market as a trader's market with a downside bias.

SP500:



DJIA:



DJT:



Nasdaq 100:



Russell 2000: