There are two important observations to be made with regards to the DJIA: a) The Index broke down below the 60 month MA (that's a 5 year trend)  b) it attempted to get back above the 5 year trend, and it stalled. This is not unusual, in fact it should be expected. When such an intermediate trend is broken, it takes 2-3 attempts to get back over it. So, at this point, another pull-back, and another attempt to the 9350-9500 level should be the most likely scenario. However, investors should keep in mind the following: The most prominent of all US market gauges -the venerable DJIA- is below its 5 year trend, that means we are still in a bear market -until proven otherwise- and investors will be well served, by familiarizing themselves with "flexible bear market" strategies. 

The Transportation Index is between its 120 and 180 month MA. It is true that it has been greatly skewed by the declines in the airlines, however, if the airlines are indeed in such dire straits, it can't be all that great for the economy as  a whole, can it?

With regards to the SP500, again, the bear market can be seen in full force. America's 500 largest companies (by capitalization) are below their 5 year trend (60 month MA) If indeed the bear market has bottomed, it will take more than just a 3 week rally, to re-establish a bull market. 

Nasdaq, on the other hand, is at a critical point. It is right up against resistance that has been in place since the double top of April-September of 2000. If it breaks above, it will be the first indication that the bear market may have its course. If it doesn't, and if it turns back down again, the next stop will be around 1100-1150. Watch NASDAQ very closely in the next few weeks.