A rally afoot? by TradeSystemGuru.com

Stocks fell for the fourth consecutive week but an interesting thing happened in the last hour of trading. At 3:26PM Friday New York time, the Dow Industrial declines stopped almost on a dime and the index reversed course.

Topics Discussed This Week:

* Stocks fall, a reversal afoot?
* Leaders fall with the pack
* Earnings – Any one have a tourniquet?
* Bad economic news but good market action?
* Elliott Wave look into the future

Stocks fell for the fourth consecutive week but an interesting
thing happened in the last hour of trading. At 3:26PM Friday New
York time, the Dow Industrial declines stopped almost on a dime
and the index reversed course. By close the Dow had rallied 159
points pushing it into positive territory for the day. Although it was too little too late to make much of a difference on the week, the manner and strength with which the move occurred was heartening. The Dow had been quite oversold on the weekly chart so the question is whether this is simply an oversold bounce or the beginning of a longer-term move. Given how beaten up stocks are (Citigroup stock now selling around $1/share), any positive news has the potential to ignite a big vacuum-powered, short covering rally.

So what can we expect in the week ahead?

To read this week’s STOCK letter, please go to
http://tradesystemguru.com/content/blogcategory/34/68/ 

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Link to Matt’s Financial Forum Presentation
http://tradesystemguru.com/FTP/FF_Feb2809.zip