Bear Market Rally Fizzles

Yesterday’s trading was very indicative of a bear market rally.  After heading significantly higher on the Buffet news and some good earnings reports the market started the day sharply higher.  However, later in the session stocks pulled back and while ending modestly higher the tape was showing lots of weakness and selling at the end of the day.  This type of activity is very common in a bear market.  The inability of the market to maintain highs was very disturbing and signals an inherent weakness that should result in more selling today.

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