Up and Away--maybe

The market just had its biggest up move in almost 5 years. The dow was up 400 points, the S&P was up 3.7%. Everyone is happy, get ready for the next bull market. Whoa! Not so fast! Hold on a minute. First of all, most of the biggest one day up moves in the market occurs in down markets. Second of all, one day doesn't make a market. Third of all, the technicals still are bearish.

This doesn't mean that in a week or two of continued up markets, that the market can reverse up and we can become bullish. What it means is that don't become overly bullish now and start buying randomly, because if you do, there is a good chance you will get caught in a bear trap. And the market will hand your head to you on a platter.