Mike Paulenoff on Crude Oil and the USO: The action in crude oil remains very interesting technically... and we suspect that the overall technical picture is ripe for a sustainable recovery rally period, which if accurate, should mean EITHER that inventory data will begin to show a less-than-expected "build" in supply, OR the market will begin to ignore the data. That said, the initial reaction to the inventory data can be treacherous if positioned on the wrong side.

View our daily crude oil chart. http://www.mptrader.com/chart12209.html

Harry Boxer's Chart of the Day: DryShips (DRYS): DRYS appears ready for another move. Yesterday it had a large gap-up, pullback that filled most of the gap, and then a steady channel up, culminating in a last 35-40 minute run that took it from 13.85 to 14.50, closing near the highs for the day going away. I was very impressed with late afternoon volume and technical surge. The 7-day downtrend may have ended with the late surge, breaking out across the declining tops line and taking out a double top from the last couple days.

See our video chart analysis on DRYS. http://www.thetechtrader.com/info/charts/

Jack Steiman on the Market's Bright Spots: With the daily charts looking bad and the 60-minute charts looking fine, some upside could be expected but nothing like what we saw yesterday. You'd have thought the daily's would prevent the bulls from getting back momentum but that wasn't the case. Surprisingly, the bulls smacked back the bears. The real catalyst to this move higher was earnings from IBM and NTRS. Both blew away the street somehow, and NTRS, being a bank, got those stocks to explode up. IBM moved the Nasday and S&P 500. The moves up on those two stocks were spectacular showing that they were loaded with too many shorts. Most of these stocks have huge short interest and if the earnings are good they can get juiced. It's not pure buying as much as short covering, but it's all the same. Buying is buying.

We have come down a long ways folks and from here it won't take much to get individual stocks to move higher on any drop of good news. How they get good news is the problem, but we are seeing it in earnings for a few. Again, if it's the right ones it really helps the whole market. A relief rally if you will. The question will be is can the rallies stick. That is incredibly unclear. We don't know what the rest of the earnings will be like and more importantly, we don't how much time and grace the market will give the new President. With the move yesterday in the market being what it was, it looks like Mr. Obama has a grace period for sure. If you want to be technical, Wednesday was inside day which is bearish but took out some trend lines (Dow/Nas) which is bullish. Mixed bag. After hours, AAPL reported earnings and it exploded. Many stocks may be printing their ultimate bear market lows such as IBM and now AAPL. We'll have to see but it does appear there are now going to be spots in the market, based on earnings, that are making their ultimate lows.

More of Jack. https://www.swingtradeonline.com/reg/AT

Gary Dean Anticipates Brief Rally Before Lower Lows: If the indexes can hold above the November lows and rally higher, then we should be in the wave C up, which I would expect the 1000-1050 level to come into play. Once that wave completes, I think the tape will be just all out ugly to the downside, where 600 SPX would be the first target. For the next week or two, I expect the SPX to make its way up to the 900-920 level, but in fits and bits. We are overextended on the 15 minute charts, so be careful chasing early strength. We should have a quick pullback with one last leg up to complete the wave 5 of A, and a larger wave B pullback should hit, staying above yesterday's lows. Once completed, wave C up should hit, which should land at the 900-920 target. Then the nail biter tell-all of this bear market rally will hit the indexes. Either they hold the November lows and we rally to new highs for this leg up (from the November lows) or we will be in the middle of wave 3 of 5 down, and 660-600 would be the targets when completed.

Read more. http://www.marketspath.com/nightlyreport.php