Last Thursday I called for a bear market rally when the Dow was down over 300 points. A huge rally began within 30 minutes and we closed up 550 points for the day. An 850 point move in less than 3 hours….amazing. These kinds of moves used to take several days or even weeks to happen, and now they happen on a regular basis at the blink of an eye. This is not an indication of a healthy market, and when you add to this the fact that the same thing is happening in the currency and credit markets, it all adds up to an environment that NO ONE has ever witnessed before.

For the last two trading days I have expected the bear market rally to continue, and there were signs that the market wanted to go higher. Each day we opened with losses of 150 points or more on the Dow and then we fought our way back to positive territory (yesterday it actually went 50 points positive), but the gains just couldn’t hold. This is not a good sign folks…this market just cannot put together a solid 3-4 day rall...