The Struggle Continues...

The Dow continued to struggle at the 8000 points region whole week long, barraged by good and bad news. Analysts are split into two camps once again... the fake out camp and the recovery camp. Analysts of the fake out camp contend that this is merely a bear market rally while analysts of the recovery camp contend that this is the start of a bull market. Such a split of camps usually signal that something significant is changing about the market and the economy. The last time analysts are this split up was just before this market crash begun. Could this really be the start of a bull market? I won't be convinced until I see how the pullback ends up.

So far, the Dow has established a short term sideways trend along the 8000 points region. The only thing that looks bullish about this is the fact that it is still treading above its 50DMA, which is great. The Dow needs to hold up above its 50DMA for this rally to continue. A break down below that line would signal the start of the pullback that I have been talking about for so long.