Weekend Analysis for Fri April 25th 2008 
| S | M | T | W | T | F | S |
| 30 | 31 | 1 | 2 | 3 | 4 | 5 |
| 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 13 | 14 | 15 | 16 | 17 | 18 | 19 |
| 20 | 21 | 22 | 23 | 24 | 25 | 26 |
| 27 | 28 | 29 | 30 | |
Fri April 25th 2008
Bulls Make Noiseby Jack Steiman,
SwingTradeOnline.com
Today was very important not only because the bulls held where they had to but mostly because the bulls were able to break the Nas out of a wedge and over a trend line and take out the gap that was there as well at 2330. The Nas leads and today it led and if earnings from this sector can continue strong and take the bears by surprise, the market can rock because the bears are basically all in and thus there are lots of shorts out there to be covered and this will supply the market with fuel for higher prices even if there aren't that many pure natural buyers. This morning we saw this when the sentiment readings came out showing a still inverted bull bear percentage. The bears are rocking. They're everywhere and this is bullish near term for the market. The market gapped up today on the earnings from Intc last night and some additional good earnings from the likes of JPM. There were others as well. Solid earnings from just about all sectors including Csx from the railroad sector which set the transports moving up. The market ran and then did a classic retest of the gap up and took off to the upside. This is what got us interested in participating in longs. We are in Ccj, Rimm and Ag. At the right time we will add more. The market never looked back after the successful retest and the rest of the day was spent trending gradually higher closing basically on the highs. After hours we got decent earnings from Ebay but spectacular earnings from Ibm. This is the perfect tonic to keeping the bears on their toes. At the time of this writing Ebay is flat in the after hours but Ibm is rocking higher. The futures are also catching a bid. Soon we will be overbought on the 60 minute charts only. The daily's aren't close to overbought and thus all near term pullbacks can be bought. The bulls took a stand today and the news and results were quite solid. It's a start.
The internals is where we always turn to see if the price action was for real or not and you also know that those internals have been improving overall over the past many months. Today was no exception to that positive trend. Advancers led decliners by a huge confirming number. 28 up for every 5 down on the Nyse and 22 up for every 8 down on the Nas. In addition, up to down volume was 85% up and 15% down on the Nyse and 86% up and 14% down on the Nas. Fabulous and to make things even better, the volume rose to 2.13 billion on the Nas. This is a strong increase over the recent down volume. No matter where you look at those internals the news is all good for the bulls. One last thing. The new highs are now decently over new lows on the Nyse and getting closer to par on the Nas. Excellent news for the market.
So now that we took out the down trend line on the Nas at 2330 along with the gap at the same price, this is now a critical support level that should not get taken out on any selling that occurs from either overbought or some bad earnings reports. The bulls need to defend what took them so very long to get through. No excuses here. It's been a nowhere market for three months but the bulls have a real chance here to take things decently higher in the near to mid term. Because earnings are so critical here there will likely be tests that the bulls will have to pass but so far the trend is looking better if you're more bullish near term. Clearing the trend line is good buy signal because of the confirming internals I just spoke about but again, please don't go overboard because we are in the midst of earnings season and thus more whipsaw is likely. Some participation is appropriate and thus our three plays and soon there will likely be more. The key for this market now focuses in on the Dow and that nasty 12.750 level that has rejected it three times in the past few months. The wedge is forming an ascending triangle which gives us hope that sooner than later the move over that level will occur. If the bulls can successfully take out 12,750, look out above. One day at a time.
Peace,
Jack
Former columnist for TheStreet.com, Jack Steiman is renowned for calling major shifts in the market, including the market top in October 2007.
