R.C. Market Report 1.28

• Today: Pre-market action indicated that we'd open higher behind the 'bad bank' news. That positive momentum carried through the first half of day. In the second half, we had the release of what I thought to be a very market friendly statement out of the Fed. Market seemed to hesitate after the release, and with the conservative republicans coming out to discredit obama's stimulus plan, market could not push its way higher.

• Tomorrow: We now have a higher high, potentially ending the recent downtrend. And the formation of a higher low to the november low may be happening as well. So this is all very positive for the bulls. However, volume still remains low and we still need to see how the market handles retracement of the current four day rally. My bearish sentiment is now changed to neutral, eventhough we can very well pull back tomorrow.