Good Friday Rally

I must admit I didn't see this coming. I wasn't expecting the day before a long weekend to be sooooo explosive! The Dow confirmed its 50DMA support level and broke the 8000 level decisively on good volume. Yes, this is the kind of action needed to keep this rally going. On top of that, the Dow made its 5th straight up week in a row today! This definitely makes this too good to be true and that the Dow should make its defining correction soon. Why will a correction be defining? That's because if it rebounds before making a new low in the coming correction, it would complete a primary reversal pattern according to the Dow Theory and we could officially call the bears dead. However, if it makes a new low, it will simply make this "rally" an intermediate relieve rally within a primary bear trend. At this point of time, this "rally" looks like its losing a bit of steam as trading volume continues to contract over the past 3 weeks. Well, the week following Good Friday has typically been up weeks, so lets see if it stands true next week.

For now, HAPPY GOOD FRIDAY and a GREAT EASTER WEEKEND! :)