SHORT NOTES ON MARKET

After the close yesterday, we were convinced ANOTHER near-term low was put in on ANOTHER reversal at gargantuan, important longer-term support. We then added our usual recent worry about how far a reversal can move the market higher. After all, so many names and areas are not in very good technical shape. After all, volume was light yesterday giving us the thought it was not a real washout. But for the 3rd time since early February, the big money defended. Enter this morning. Markets did not open too well…but reversed quickly. And then at just after 10, with sellers gone, buyers got the upper hand. Notwithstanding a reversal of a reversal (we have seen that before and it is early in the day), it looks like another good A LOW is being put in. It’s not just the major indices holding support areas but also the important SOX as well as many other groups. BIG FINANCIALS undercut support but are quickly back above. Keep in mind the big picture remains the ping-pong, back and forth action we have been telling you would occur. We suspect much more time in the range that has been carved out since the highs of late January .Let’s just hope that after a 3rd failed try to break those important support levels that this turns out to be THE LOWS. Will need a few more cards coming out of the deck but a good start nevertheless. And APPLE (AAPL) into new all-time highs does not hurt the cause. Yes, it is that important a bellwether. And yes, all happening after a bunch of analysts lowered numbers and downgraded the stock. More coming in our weekend report.