MARKETS 01/06/09

Today was a very interesting day. On the gross level, we had a smaller range day than yesterday, with volume running higher and a close in the middle. Supply overcame demand. Intra day we rallied in the first half hour on basically two high volume bars. The third bar about 8:55 also had very high volume, but the range contracted, as supply overcame demand. The bar ending at 9:05 stabbed to a new high and then reversed to decline on the largest volume of the day. The range of this bar i believe was also the largest range of the day, showing some ease of movement down. Heavy supply pressured the averages until 9:30. At 10:15 we began three waves up which failed to make a new high for the day. The first wave ended when demand evaporated at 11:55 and the second also when demand failed at 14:00. At that time another sell off began and volume increased with the price decline. Prices were supported at the same point to the penny as earlier in the day and then another rally attempt began. 4 of the next 5 closes are within one point of each other implying supply is overcoming demand. The upward push of prices was contained. I believe that this constitutes another bearish day.