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DJIA BEAR MARKET RALLY? MONTHLY CHART SAYS SO

DOW JONES INDUSTRIAL AVERAGE GAINS ASTOUNDING -- STILL A 'BEAR MARKET RALLY'?

Yes.  According to the DJIA Monthly chart.  The bull market requires higher highs and higher lows.  Note the chart below -- read the red trend line in the top pane -- and you will see lower lows and lower highs during the price decline in 99-2002, followed by higher highs and higher lows during the Housing Boom cycle rally.

The current rally appears rather insignificant, merely a blip up after a steep sell-off.  To become a real uptrend rally it needs to decline and re-test successfully the March lows and support at 6470 -- or take out overhead resistance at 12,613 without pulling back.

Time will tell if this is a real change of trend rally.  One thing is certain, the markets have never had so much active involvement from every element of the government seeking to make this rally last as long as possible.  One wonders what effect that will have long term on the perception that the market is a neutral entity -- not another casino operated for and by strong money interests.