Just when it looked like the Bears had a chance at regaining their swagger along with a decent correction, the market does the unexpected and snaps back with a 1.14% gain in the NASDAQ Composite. The risk trade which had been off for several days was back on with the VIX falling 13.6% yesterday, and the TLT ETF, the 20 year treasury bond iShares off .4%. The GLD, the gold ETF, which is still in a downtrend on the weekly chart, held steady.

The 4000 level on the NASDAQ Composite has held so far, and I am still considering that level as critical support. A close below 4000 after yesterday’s strong rally would confirm that the Bears are back in control. As of now, neither side seems to be in control and each day is an emotional whipsaw. Read Full Report