Fallon Financial Commentary: Monday gap tests important Get the latest market commentary and stock trading ideas from Declan Fallon

There is a guest post at Investment Postcards from Cape Town by Bennet Sedacca entitled "What it would take for me to become bullish" which is worth a read. On the more technical front Headline Charts has good charts on US dollar/Bonds/Equities/Commodities showing where the bull and bear markets are; if you look at what happened to bond prices in '87/'88 when they started their bull market and reflect that on the commodity correction today there is reason for optimism.

As for yesterday's action, none of the selling could have been considered surprising. The morning gap was never going to hold after the low volume gains of the prior day. What was more surprising was the late day rally in large caps which put a slightly more bullish gloss on what looked to be a straightforward profit take from short term traders.

Tech markets closed weak, but have put some distance from their withering declines of before; a retest of the 1,652 gap in the Nasdaq looks too inviting to refuse (1,271 for the Nasdaq 100).