The Bulls Fight Back...

The Dow rebounded 279 points today as Obama demonstrates resolve and new political direction during his first full day in office as well as a united fight back by various bank CEOs in buying the shares of their own banks.

In a way, it seems like everyone's rallying behind Obama in the effort to stem the economic crisis. Such resolve and commitment was what was missing in the last administration.

So, what does the rally today mean? Nothing much on itself own actually. Like I said yesterday, a pull up after a sudden sell off is totally to be expected. What is going to give it meaning is what it does the next day. If the rally continues tomorrow with the Dow breaking above the high of yesterday's ditch, the effects of that ditch will be erased and the Dow would go back into a short term neutral trend. Today, the Dow didn't go up high enough to break yesterday's high, which means that it is still in the danger zone.

Tomorrow's jobless claims (see economic calendar) would be the focus as investors look for stabilization (yes, nobody's expecting a reversal yet).