Hi BapsI have only been using using Dilernia model since early...

Hi Baps

I have only been using using Dilernia model since early this year so Im no "expert".

You have valid points which may play out in the coming days or weeks. Last night the CMC Aussie200 low was 4579, so it was near the monthly support of 4560. This may mean something.

I dont think this rally will last more then a few days or a week or so. I bought BHP and the banks (CBA especially) yesterday because they tagged their 5day support and weekly support respectively. I have found that close examination of the XXJ, XMJ, BHP, RIO and the banks have helped me A LOT in finding turning points in the market, as they comprise a very large proportion of the XJO. When these stocks hit their weekly 50% levels (if they do) their behaviour will indicate if the rally has legs. So sometimes you cant easily explain why the index reversed because its not near obvious Dilernia levels, but when you examine the stocks and index's mentioned above it makes more sense.

So yes, from a dilernia model perspective its bearish, but some major stocks are bouncing off their dilernia (and other) supports.

So in summary, I have no [content moderated] idea.

Hope that helps :)