Like 007 in a James Bond movie the market roared back to life and avoided certain death at the last possible moment. Who'd a thunk it?? (No grammar lesson please. It's a cultural thing) 

The market flew back up through former support turned (supposed) resistance just like it came down through those levels...without any hesitation. This leaves the very real possibility that it's a real reversal this time. Those were MAJOR support levels we were dealing with. I'd been hoping for those levels to hold and establish the bottom for what I've been calling "phase one" of this great stock market unwind.

The only problem I see is that this was definitely a short covering rally sparked by a news event. That doesn't mean it'll fail but it does make me pause. I would have rather seen the market fall through those levels in the morning and have a sharp reversal on heavy volume the same day. Maybe that's how the market will fool us all this time. Most traders were looking for that same wash out and reversal pattern.

When the markets closed below even the 2002 intra day lows, bearishness became almost palpable.  Hey, just look at the picture I posted on my last blog. I'd been holding on to that waiting for just the right moment. Maybe that moment was the exact bottom! Time will tell.

You may want to try a small long on any pullback. We're still only 60 points off of the bottom. It's going to be interesting to see how the market handles the holiday trading environment.

I'll be traveling next week but keeping a close eye on things. We'll be in Gatlinburg, TN for what's becoming our annual Thanksgiving getaway. If you've never been it's a beautiful place to visit.