Was I Wrong?

Yes, I was wrong in predicting a red Monday. It seems like the well known Monday effect have been failing of late.

The Citigroup rescue plan seemed to be doing more good to the rest of the market than to Citigroup shares itself. In comparison with its decline last week, today's 58% gain looked like peanuts. In fact, it closed slightly lower than its opening price today, indicating a lack of follow through and signs of profit taking. This means that investors are not about to be all out optimistic about Citigroup yet. So why are they so optimistic about the rest of the market today? Well, I still don't see this "rally" changing anything. The Dow is in a short term deep oversold condition and needed a relief rally in order to go further down anyways so it might as well coincide with a bit of good news. Over 10% gain in 2 days is extremely impressive and definitely sets up for some real good profit taking or loss cutting. However, I must admit that there are definitely forces in the market that is limiting the effects of this final capitulation. Will whatever force that is be enough to stop the final capitulation and set in a bottom? For me, I see chances that profit takers are going to come in hard on tomorrow's GDP numbers (see economic calendar) and resume the intermediate downtrend.