There seems to be much ado about nothing all over the TV tonight because the market "rallied" 400+ points on a late day Friday rally to end the week 400+ points DOWN! The media are so giddy as if everything is just fine now. However, If you put away your five minute charts and your tick charts for a second and take a look at the big picture here is what you see on the S&P. The lowest weekly closing price of the 2000-2002 bear market was 800.58 Today's close, a weekly close, was 800.03 Think it was a coincidence? I think not. It is a point where bulls and bears are fighting. Technically it closed BELOW resistance. And the daily chart looks very bearish to me, like a short covering rally right up to the resistance point. But I think it's too close to call it yet since an oversold bear rally is always possible if not probable. So now we have to turn to the monthly chart which closes next week. We are looking at 815.28 Close above that and the bull have hope. Close below that and the bears have confirmation. I am not making any predictions, just pointing to the facts. However, I did make some nice profits in PUTS and short futures positions the past few weeks and I took a small call position in DIA Thursday when $indu touched 7528.40 (can you figure out where I got that # from?).