Stock Market Analysis: Bounce Call Nailed As Capitulation/Pivot Seen

The markets are bouncing today after a master pivot at the December 31st, 2010 gap fill is hit. In addition, the volume yesterday clearly showed short term capitulation. This enabled longs to be initiated yesterday, when everyone else was too scared to buy. Today, profits galore. The Dollar is also breaking down. Also noted is the relative weakness today in silver on a strong up day in the markets. This may be setting up for further downside. The SLV target is given. Oil stocks, technology are leading the market while financial stocks are lagging.