Bear Market Rally?

The market continues to rally on G20 news and lack of any real bad news showing things are worse. As I wrote at the end of my last article several had targeted this rally to hit 8k on the DOW which we have now broken through, we may not close above it but close enough. One very interesting stat I heard yesterday is that on average bear market rallies last 18-21 days. Which would mean this rally is in its final few days if those averages hold true.

Hard to see this continueing on hope and change alone. If we are going to see a extension of this rally past the 18-21 day number we will have to see some solid numbers that show things are really better than they were. Even in the most broken down markets you get strong rallies which surge and make people think that the worst is over, these type of rallies are known as bear traps. If you have ever seen a bear trap you know that the last place you would ever want to get you leg caught in. With both GM and Chrysler dangling by a thread who knows what the next 30-60 days will bring us.