Comments on yesterday's market behavior (7/16/2010)

Yesterday's market is an action movie. Bulls and Bears are fighting,, I mean it is a battle. First, in th morning, SPY confirmed the trend change, but last half hour, it broke the downtrend line.

Today: (from Hutong9.com)

If SPY confirm the trend change again, then bulls wins.
But again heavy resistance is waiting for bulls ahead. Unless bulls gap up and flying higher. If that is the case, run, bears.

Here are my thoughts:

My estimation is still the same tone: yesterday's pull back may lead to higher breakout, so expect recovery high, but the accumulated reversal signal indicate a big pullback ahead. be careful for that if you are still bullish. I am not.