Holding the Final Line of Defense...

The bulls defended and held the final line of defense against a marauding wave of bears today. The 8200-point line of defense is safe for now but not without signs of cracking as the Dow made a lower high and a lower low today. Lower high and lower low means that the bears are still active and still might win the day tomorrow. Today's struggle may be the prelude to this Thursday's Leading Indicators (see economic calendar) as the bulls continue to speculate a bottom set by a positive number. From my perspective of economic outlook, with the recession spreading globally, I really don't see where the stimulus may be for leading indicators to point upwards. In this sense, this Thursday's lousy leading indicators numbers may be the catalyst needed to produce that final capitulation that I have talked about so much lately.