Market Comment 07 07 10

We finally got the bounce we were waiting for.  It was larger than anticipated, especially given the head and shoulders pattern that had been completed.  With the neckline resistance of the H&S pattern being violated with such authority, we may now be in rally mode for the short term.

The intermediate trend still is bearish. The bulls and bears now have a big fight brewing, so a high level of volatility should be expected.