Market comments for March 9th trading

Market action on Tuesday, while an impressive gain from the day's drop on Monday, kept both the Dow and the S&P 500 within an even tighter range. The Bulls are using the day's progress as evidence we are still in a Bull market. The problem is the charts say otherwise. It isn't so clear that we are still in a rising market.

The 2 charts below clearly show that in the past 5 market days the range has been tightening. You will notice that both on the Dow chart and the S&P chart we are forming lower highs and higher lows. This is setting up a breakout either to the upside or to the downside. It is impossible to guess which way it will go, especially because the Fed can trump any downturn with more QE2 funds to prop up the market. Stay tuned to see where we wind up. Oh, and by the way, in the last 15 minutes today over 40 million shares were traded by Institutions!