UPDATE

Just a quick update tonight. The market rallied today, but the sellers were able to push it down a bit at the close. It also made most of its move up with the gap up at the open. This means that the gap up was mostly due to short covering and the new buyers weren't able to push prices up much after that. We could still rally up a bit more and test that 1295 resistance, but that isn't really necessary. Today's move was big enough to bounce us out of the extreme oversold condition. We could head back down soon. BAC and COF had big bearish engulfing candlestick patterns today. This is usually a strong signal that they will move down a bit further. The whole financial sector is a bit oversold, but that price action today would suggest that some of these stocks aren't done selling off...although a bearish engulfing pattern is strongest when it occurs near a high. NSC, VMW, and CNI gave buy signals today, but I'm still a bit hesitant to go bullish...at least not yet. NFLX almost gave a bullish confirmation. Keep an eye on that one.