Bullish or Bearish going forward? - My Take

$NASI and $NYSI just turned up - indicating strong buying pressure as these indicators don't usually flip-flop around. The participation in the recent rally was widespread, which just confirms the move in $NYSI and $NASI. AKAM FFIV and other leaders of the rally have not broken down in the recent move down. Earnings are strong overall. $NYA50R and relevant indicators still show room for a move higher. SENSEX is strong and has not shown any weakness.

The negative points are - prices are still below the 150EMA and 200EMAs and trending down. There are many prominent names in bear territory, RIMM, GOOG etc. Even AAPL is range bound. The fundamentals (PMI, leading indicators etc.) are weakening. China, Brazil are showing weakness and Europe situation is far from over. To top it all off, US housing ARM loans reset in 2011, so that is something to be aware of down the line.

The big thing to keep in mind is - TIMING. Fundamentals are short and long term, TECHNICALS always rule the prices in the meantime.

Keep an eye Trades - DO NKE UNP MCD PFCB

HMOs (AET CI HUM WLP UNH) are quietly rallying - keep an eye for entry or reversal off of resistance!