Looking at DIA’s daily chart (see inset), one can practically feel gravity’s weight. Monday’s rally was pretty feeble in comparison to the two-day downdraft that preceded it. It’s not difficult to imagine that it won’t get very far. Such short-covering as we saw yesterday cannot compensate indefinitely for the dearth of bullish buying that has been a feature of this market since October. In fact, what little of it occurred yesterday lasted for only an hour. Even at that, the squeeze was concentrated in the final hour, when bears are easiest to stampede. We will short this rally if we can, although it is not possible for me to provide reliable guidance for this task ahead of Tuesday’s opening. Stay tuned to the chat room, since any upthrust to a midpoint resistance or a minor ‘d’ target will offer an enticement that is not to be passed up._______ UPDATE (8:23 p.m. EST): No change.
