It is hard to believe that just one month ago the indexes were flirting with making new lows, and now, they are ready to break through the primary down trend.

Everything about this move up has been just right–look at the volume, for example.

Nasdaq volume has been especially interesting. As I mentioned a few weeks back, it had been punished the most and therefore stood a good chance of rallying the most. The tech index has indeed rallied, right to the bottom of its primary downtrend line.

Technically, since the indexes are still trading beneath their 200 day moving averages, they are still in a bear market. I guess, too, that until the downtrend line is broken, that the indexes are still in a downtrend. It seems like splitting hairs, at this point.

To me, it all seems surreal. I’m left feeling that I’m not sure if its worth it to ever be net short again, for more than just a trade or two. The Fed has made it clear that the market is not allowed to correct, and stocks must always stay over-valued. Companies that have made decisions which should have bankrupted them are aided and abetted ensuring their survival. It seems to me that it will be easier to develop strategies that buy extreme weakness and capitulation, rather than trying to get short early enough and stay short long enough to see real profits.