Over optimistic.

After rallying for months on expectations of an economic recovery, investors are worried that they have been too optimistic, given consumers' continuing reluctance to spend.
There is still going to be a tug of war between good news and bad news as we move through the coming months.
Investors also sold off oil and other commodities and moved their money into the relative safety of the dollar and government bonds.Oil prices sank $3.01 to $67.51 a barrel.
The Federal Reserve said on Wednesday that the economy was "leveling out"but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit. That means that the economy is still flat and directionless and can still succumb to a humpty-dumpty fall.
We have to be on standby for the anniversary of the October 1997 Black Monday crash as history might repeat itself.We are now in mid-autumn and the market might get frozen by winter.
This might be a good time for hedge funds,mutual funds to find an excuse to unwind its positon early for year end book closing.
Meantime,The Reserve Bank of Australia will have to raise the benchmark interest rate from its “emergency” level at some stage as the economy rebounds from the global recession, bank Governor Glenn Stevens said.
The Australian dollar and bond yields jumped on mounting speculation the central bank may increase borrowing costs before the end of the year.
As for India's Mumbai Stock Exchange the government is considering a plan that would require at least 25 percent of a company’s stock to be traded which may trigger as much as 1.9 trillion rupees ($39 billion) in stock sales, equivalent to five years of equity offerings, with a proposal to limit stakes of controlling shareholders.
The rule would prompt equity sales in 560 of Mumbai’s 3,335 most-active stocks, such as NMDC Ltd. and Steel Authority of India Ltd.,

Tracking the Dow on Friday.(14/08/09)--PIVOT DAY of month,5market days to expire.Nikkei expire today.Asian index futures expire 31/08/09.

9:30am:--A bearish 3 black crows.

The core CPI reading increased 0.1% month-over-month after increasing 0.2% in June.

10:30am:--An hourly low with hangman.

July industrial production increased 0.5%, which is slighly better than the 0.4% increase that was widely expected.

11:30am:--Completing the morning session low with a bullish harami.

Crude is currently trading near those lows, down 1.8% at $69.26 per barrel.

12:30noon:--No sign of retracement not even to bear pivot but there are bullish engulfing sign.

Weakness remains widespread with declining issues outnumbering advancers in the S&P 500 by approximately 15-to-1.

1:30pm:--Bearish engulfing.

Losses are steepest among materials stocks, which actually fared the best in the previous session.

2:30pm:--Another bull covering noticed with chances of a technical rebound to either the bear pivot or MAV.

According to the University of Michigan's preliminary survey, consumer sentiment retreated to its lowest level since March by coming in below expectations at 63.2.

3:30pm:--An inverted bullish hammer at the bear pivot looking for penetration.

Participants' lack of interest this session is reflected by the exceptionally low level of trading volume.

4:00pm:--Closing right on dot at the MAV resistance.

This bull short-covering ended with a hammer pointing down.

Friday's closing is a bearish hammer with a long lower shadow yet to be utilised again.

The August low which is also the opening price(9,173.65-unchange)has not found a real lower shadow and the chances of looking south is quite high in the next half of August.

The market is now news sensitive to inflationary pressure.

The distance from Friday's closing to August open is a mere 147.83 points and is very fragile.

This is the second attempt to pierce the bear pivot.