Over the last several weeks, I have focused almost exclusively on the potential rebound in the market as we enter into the seasonally strong time of the annual investment cycle. To wit:

“As you can see, the markets did retest the late August lows, and when combined with the very oversold conditions, led to a frantic “short covering” rally back to previous resistance. It is worth noting that the recent market action is very similar to that of the August decline and initial rebound as well.

Of course, the question that must be answered is whether we have seen the end of the current correction or is this just another “reflexive rally” that will fail?”

The chart below is updated through yesterday’s close.”

….click HERE for larger chart and more analysis including Sector Analysis and Year End Rally Coming? (scroll down)