Market Commentary - Monday

Markets closed above the weekly supports with hammer formations, as noted earlier, SPX 1400 + and Qs 47.43 supports are held. Nasdaq closed at 2499.46 making me wondering about whether it could not put up 0.54 to close above 2500. DOW also bounced off from the Nov 2007 low support.

However, AAPL and other big cap stocks price formations are not so encouraging, so need to see. Obviously many are bearish on the market. The headline, "The financial sector is expected to weigh on corporate earnings in the fourth quarter. But outside the sector, the news is upbeat", is stating that earnings will be fine, and will see.

There is a rumor which was going on for months that we could see a conflict with Iran and many newsletter writers were written on the subject, so I sensed, we could indeed see it?

With the volatility which we have seen today, markets are so far so good as we didn't see market crash as I think that Bernanke lived up to what he claims than Paulson did.

The HOD today was the resistances, so we need to see breaking above the resistances to hope to see prices trading to upside, in the mean time, markets are showing "hammers" with higher volumes showing a potential support at where market could trade up. We are now entering "earning report" month and it will see volatility.