US stock market update --- 12:15PM ET, 10/7/09

Yersday's rally was not confirmed by $Bpcompq which didn't gain at all. Today, as you see from the 60 min charts, both Nasadq and $SPX tested downtrend line (red line) and failed to take them out. The MACD histogram from these two 60 min charts are showing negative divergence.

Again, as long as downtrend is not taken out, the trend is still down.

Will post more analysis after market close.