880 & 930

After this horrible choppy month I hope we'll see a bit more action in June...

First, take a look at the three scenarios I posted last weekend.

http://ew-analysis.blogspot.com/2009/05/another-boring-week.html

Well, all three counts are still valid, although the bullish one is now more likely than last week.

The situation is as follows: long above ~930, short below ~880; sounds quite easy, doesn't it?

Since I still prefer the downside (at the moment I don't see how the market can break all the resistance lines and the 200DMA), I looked at the previous bear market rallies. I found some nice similarities:

Nice week folks! ; )