Today’s give back of most of yesterday’s stock market rally is not surprising and was necessary. Last Tuesday, the 26th of April I posted that the stock market had reached a short term point of capitulation that would lead to an 11 trading day respite that would see a choppy market with an upside bias. That has been the case, since. Because we had such a strong day yesterday(remeber the biggest rallies occur in bear markets) it was necessary to pullback significantly because there isn’t a lot of upside above yesterday’s close left to go. Now that we have given back so much of the gains, we have some room for the remaining four trading days before May 11th’s close. By then the bear market should be ready to resume it’s decline. We should see some decent moves both up and down between now and then but don’t expect any breakouts either way until then.