Let's begin with the daily Dow. Yesterday the average broke out but without any significant expansion in volume. Today's volume was about the same as yesterday but the range narrowed and the close was midrange. Some kind of pull back can be expected tomorrow. (The volume on the SPY tells pretty much the same story.) I believe most of the rallies in this bear market have ended on low volume.

Turning to the 50 min SPY point and figure, we have commented on the large potential count. The breakout which looked so impressive on the daily chart does not look as impressive here. In fact, unless the market makes substantial upward progress shortly, I read this as potential shortening of the thrust.

Please observe the 5 min chart of the spx(pnf) and notice that we ended in the upthrust position. I have noticed through doing this blog that we end the day in a spring or an upthrust it usually turns out to be significant.

I had expected to write a bullish blog and am surprised to find that on closer inspection some kind of pullback seems imminent. I just checked and the banking index has not made a new high close.