Thanks VHF

I would like to add some comparison. In 06 the DOW was in a straight line power trend up. Little joe was jumping in with both feet.

Today the Dow can't even tread water at the down trend line. The Fed has to convince little Joe to come back. However little Joes house has been foreclosed by the same entity that convinced him to use it to invest in the top of the market.

Chart 1: it indicates a very long tail Doji on Thursday meaning not everyone is convinced

As per your statement: "Do any of you think that the massive CalPERS pension fund did not buy in at these firesale commodity prices?" They may have put in a position and are ready to add next week regardless of direction.

http://stockcharts.com/h-sc/ui?s=$CR...

Chart 2 06 CRB note most of the tails point down

http://stockcharts.com/h-sc/ui?s=$CR...

Chart 3 a comparison of S&P DOW and CRB. If the pension funds and little Joe are pulling out who will power the dow

http://stockcharts.com/h-sc/ui?s=$CR...

My caution is short movements will not change any long term directions overnight or even in one week. So whatever one sees next week is not a bubble burst or trend change it is Volitility which is the name of the game now.

Want to see a real bubble burst look at the NASDQ in 2001 and remmeber this was a index of internet stock at the time, no hard assets; people like Buffet wouldn't touch them. Commodities are not going to vanish. Weird as it may seem to some, but if the internet companies become rare it is because they are worthless, if commodities become rare they are priceless.

These are only my observations and thanks for the inputs from all here. Its great to talk TA and Fundamentals again.

Trade well

Reg Mills