Market Summary

While last week as a whole was in the red it did make a stunning comeback on Friday to make a Key Reversal Day to the upside. Also, we had the breakout of a long term downtrend line to the upside in many of the markets. What does this mean? If we get follow through to the upside next week we could have a trend reversal pattern and start to make higher highs. If we gap open to the upside on Monday we will have created an Island bottom formation which is extremely bullish. In any event I expect some form of rally to occur, possibly as a result of the auto industry bailout, in which case we will see more green columns on the left side of the table below (recent past) and that will extend to the right side (longer term past). As can be seen in the table below the EEM, which is down over 50% YTD, has made a whopping 23.44% in the last two weeks. And the $RUT Russell 2000 index is up nearly 20% over the same period. Click on table to enlarge.