Market update

The expected test of the trendchannel resistance and the 50 day MA was a turning point as expected for the NDX. The tide will turn very likely tomorrow after another upside test car bailout). The volume was low today as we sold off and the temporary optimism will turn til Full Moon into another volatile sell off after the ABC correction is completed ( as it may by today) - sometime this week. The SPX did not make it to the 940 area and closed below 900 - crucial will be the Friday close but as of yesterday we will be able to see if the assumption is correct. A bailout of the car industry is very likely and its pathetic to hear the Bush administration being suddenly so discriminating after having thrown hundreds of billins in a stupid way on wallstreet ( we discussed that earlier) - sure is that the money asked for now will not do the trick - they will come back and ask for more, but it does not make any difference to give them 100 bil or 150 bil is worth the trouble. In some bank cases the gave 75 bil away to banks with no need officially knowing that they would not lend money to anyone but use it to pay the bonus checks.