Market Down Despite Optimistic Fed

As expected, optimistic comments from the Fed did nothing for the market as investors continue to sell into the pull back scenario. In fact, not even the better than expected durable goods order helped.

The Dow had a good early day run but was quickly beatened back to the reality of the pullback, closing down marginally by 23 points. It is pretty clear now that we are in a technical driven market and that looking out for where this pullback ends up is the most critical thing for this whole reversal scenario. So, how far down is good? As long as it does not make a new low, it is good. This pullback will tell us if the rally we had is a bullish reversal or just a Bear market rally. Again, I doubt if tomorrow's GDP number will help with continuing this intermediate bull trend due to reasons I cited yesterday (see stock market calendar).

For now, the Dow remains in short term bear trend, intermediate bull trend and primary bear trend.