End of Relieve Rally...

Today marks the definite end of the 2 weeks relieve rally with the Dow correcting over 250 points for a collective fall of over 400 points in just 2 days. This was a much stronger and much more definite correction than the one we got on 20 Mar 09 and therefore leaves no doubt that the relieve rally is officially over. The Dow is sitting right on the 7500 level right now. This is a very critical point... If this level does not hold as support, a visit to the March low will be the next to come. Looking at the continued retreat in trading volume and increasing short term bearish momentum, it seems doubtful that the 7500 level would hold. In fact, I do see the market going into an extended sideways trend much like what happened back in 2004, which makes short term traders very happy. All these are going to coincide with this week's GDP revision and unemployment rate number (see stock market calendar). Trust the charts.