The action in the markets today were definitely lacking as a follow up day to yesterdays rally. With all of the conditions in place we have, a real rejection of the lower price levels called for another strong up day like yesterday. It didn't happen and that bothers me.
Bernanke was speaking today so that could have put a damper on things a bit.

Maybe tomorrow the markets will charge up another 4% on extremely heavy volume. It'll take something like that to solidify this area as a potentially important bottom. I really need to see another days action.

As a note Chairman Bernanke is advocating modifying "mark to market" accounting rules for some assets. The SEC dismissed this idea in December but it just won't die. There are some pretty important people pushing this idea as a cost free way to reflate assets. As a result, I believe it there is a better than average chance that something will occur in this area at some point, especially if the market weakens and plunges further from here. I believe any modification of those rules will result in a massive short covering rally the likes of which we haven't seen in this bear market, so be careful.

The XAU showed more weakness today giving back a large intra day move and closing lower. I expect weakness in this area to continue for now.