Simon: Bullish Bearish

Many reasons to be uncertain after today's market action. Are we setting up for a huge bearish reversal or are be we just consolidating for the next push up? I am unsure...all i can do is name reasons for why i am both Bullish and Bearish

Bullish Signs:

1. very light volume on consolidation, including today
2. no evidence of a lower low or lower high
3. almost all of the gains from the huge 400 point up day last week are still there
4. bullish divergence in the MACD and other oscillators. 1st clear signal of bullish divergence since january
5. despite being real weak intraday, the bears were still unable to pull the market deep into negative territory. in fact, gains were held in both the SPY and DIA

Bearish Signs:

1. VIX is near its recent bottoms. In the past several months, everytime the VIX has hit these levels, a strong pullback came rather suddenly
2. we are still in a bear market. rallies will be quick, powerful, and will usually fail. odds are in favor for another leg down
3. strong resistance is still held at 1375 on the SPX...we are at a similar resistance on the IWM, QQQQ, and DJIA...
4. when looking at individual companies, many of the graphs have had huge runs. they seem to be need of a pullback. without a pullback, i don't see how much further these companies can run.
5. i can't find any great companies to go long on. either they have run up very vertically and overbought, or they are big laggards unable to bounce off their bottoms.
6. doji's or reversal candles have been made in many of the high flyers today. opening big and running up huge to close near the lows of the day seems to be the story for many of the big stocks today.