Finding a Market Bottom 012408

The Nasdaq bounced hard off the monthly chart I posted a few days ago. The bears did their job in holding it down for an uncomfortable amount of time, but the bulls are back in town. Is the bottom in? We’ll have to wait and see. I expect a test of the 20 day moving averages on the major indexes before resuming back down… and oh yes, we’ll be heading back down. This Bullish reprieve will probably be fast and furious in this Bear market, as counter-trend rallies usually are. When you start feeling comfortable it’s going to be time to short. If you missed the first round, get prepared for the second.

GS is on track to trade back over 200, and break through that downtrend line.

Look at that volume in the Bullish ProShares Financial ETF UYG. I’m watching over 38.20 for the next leg up to resistance.