Stocks Rebounds...

FUNDAMENTAL ANALYSIS
The Dow staged a rebound today like it did the last time it ditched on 20 June. It is certainly not unusual to see some accumulation after such heavy selling. There didn't seem to be any convincing market movers today except for some take overs, which has been happening throughout the year, and comments that Bear Stern's hedge funds will unwind in an orderly fashion. On the downside, we have crude inventory lower than expected for a second straight week, rallying crude oil prices even further. Crude oil prices will certain put some pressure on the market should it continue to move higher.

TECHNICAL ANALYSIS
The Dow looks like it is repeating the exact same pattern it did the last time it came so close to new highs on 20 June. One big drop, followed by one recovery day and then the definite drop down to the bottom of the channel. I maintain the same assessment I had yesterday.


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