In the end, investors and traders really did not want to go home long equities Friday, even after the Fed's emergency rate cut on Tuesday, which is certainly not a confidence builder. Maybe the bulls will feel a bit more confident after the weekend.

In any case, I think it is fitting for us to take a look at this week's price range in the S&P 500 and to notice that all of the action, including the post rate-cut rally, has transpired below the last week's critical breakdown plateau at 1362.50.

Although the SPX did hit a high this morning at 1368.56, it could not sustain, and closed the week more than 30 points under the break-down plateau.

In other words, despite the Wed-Fri rally, the dominant intermediate-term trend remains negative.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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