It is really difficult to properly analyze a market that continually receives Fed support during options
expiration week when the Fed pumps money into the system, an indirect support of the stock market.
This is a fact that goes back to 16 July 2009 and every options expiration week since.  The "free" market
is not so free, what with the corporate federal government taking over so many business-related
functions, and with no opposition...certainly not from Wall Street, the prime beneficiary of this Fed
largess.  It is the non-Wall Street participants, [read that as stockholders, pensions, 401ks] that take
the hit.

 However much any faction may interfere, one thing can be said about the market with certainty: it never
lies.  Reality may get overstretched, periodically, but the "facts" eventually bear themselves out.  Look
at the volume during the rally near mid-June, with so many green volume bars.  Ostensibly, that would be
very bullish.  Then, look at the bars at the top of the June rally.  Notice how they become smaller even as
volume was relatively high.  A lack of range extension upside on increased volume is a red flag.  The
rally fizzled and the market broke to new lows in July.  The quality of the rally was lacking, near the end.

 Now we have the July rally, surprisingly strong,[why not when the Fed is backing it], but note the volume
this time.  Volume is half of what it was in the June rally.  That brings us to today.  It looked like price
was headed south, but once again, something prevented the downside from gaining momentum.  That
"something" is anyone's guess.  So, we deal with what is.

 We then look at the closes.  They have formed a cluster, and we have written about closes that appear
in a tight range.  It usually marks a turning point.  Did we mention how small the rally bars were leading
up the the past three days, on weak volume?  Yet the market still rallied.  Oh, well.

 Another possibility for the clustering of closes is that the market could be biding time in preparation to
continue the direction preceding the clustering of closes, up, in this instance.  Based on the internals of
the market structure, we are not fully convinced that the rally has sustaining character, but one can
never fight the tape!

 If there is to be a turnaround, the market will indicate by wide range bars down that have poor closes
and increased volume.  The same is true of how a market rallys: wide range bars that have strong
closes and increased volume.  We do not see that here.

  Accept no substitutes.     [Currently, no position]