Pre market action sent all major indices up before the bell sounded this morning. But once the bell did ring that was the end of the bull attempt to rally the market.

We have warned repeatedly for many months that bear market rallies will be common place during the life of our current bear market. I said this morning in the pre market report:

If you are thinking of trying to jump on to this pre-market rally buy going long the market you may be jumping onto a boat that the tide may take right back out to sea again.

And that is exactly what happened. If you jumped aboard the market this morning in an attempt to go long the tide took you out from the moment you got on board. We can’t stress enough how important discipline and patience is in a bear market. Bullish rallies can wipe you out quickly and without mercy. In a bear market mercy is offered to no one.

Today’s selling was on strong volume. Each time the market made another significant downward move the volume increased. This sign of strong selling is a classic bear market rally response. Low volume takes the market up and then high volume chops it back down.

In the video I posted for you last night I said that the markets are ‘hanging’ in mid air. We are at a point with no ‘clear’ trend established for the short term. Today’s trading gave only a little bit of insight into the next possible move for the market and it does lean towards the negative side. But, still more time is needed to have a pattern develop that we can put our finger on. Right now the pattern is erratic.

Tonight CNBC’s prized stock guru Jim Cramer said that today’s market action was nothing but a head fake. He based this call on two sectors, home builders ($HGX) and the banking index ($BKX). Mr. Cramer said the gains in these two sectors today tells him that the bull market is back. Really now Jim… have you looked at the charts?

I have and they are a far far away from being bullish. The two charts shown below are the exact sectors that Mr. Cramer claimed tonight prove the bull market is back.

‘maybe if I stand on my head, look with one closed, and put 3D glasses on….