Relief for the Bulls has arrived as the DJIA rallied for 3-days with very good volume. Most of the Bears have helped pushed the index higher as well because they were forced to cover their short positions. Collective buying has upgraded the DJIA from a short-term down trend to sideways to up trend.

The short-term trend line as plotted in the chart below show's its significance by being hit 6 times since May 19 when the market peaked out at 13,171. With the break of this trend line last Thursday, we will see the Bulls to forcefully push towards the 12,000 level. Key resistance levels are set at 11,500, 11,650 and the psychological 12,000.

Outlook:

Short-Term : Sideways to Up

Medium-Term : Down

Long-Term : Down

While the Bulls in the DJIA clearly out run the Bears, it is not the same case in the NASDAQ. Both sides struggled as of the moment trying to out do each other. The Bears forced the break of the 2,202 level in the NASDAQ last Tuesday but failed to sustain it as it closed above that level. The Bulls have managed to follow the DJIA's move to break the short-term down trend line last Thursday but the Bears kept it from continuing on the last trading day of the week.

The battle will continue this week and who will win remains to be seen.

Outlook:

Short-Term : Sideways

Medium-Term : Sideways

Long-Term : Sideways with Upward Bias

The S&P 500 followed suit as well by trying to push itself to higher grounds. However, Friday's performance proved this to be tough. A long journey is to be treaded even if the S&P 500 manages to break the 1,256 and 1,275 levels easily in the weeks to come as another down trend line awaits at about 1,300 level.

Outlook:

Short-Term : Sideways

Medium-Term : Down

Long-Term : Down