Rally ahead ?

Despite the bad news, the market managed to eke out a victory and finally had a week where it closed with a gain.  In addition, we had a positive Friday.  Looking at the daily chart, you can see that we have finally breached the downtrend line.  Now to see if the market can hold above this point.  Sometime the market will breakthru the downtrend line but then continue to move down but getting support from the continuation of the previous downtrend line extension.

We did, however, heard some more bad news over the weekend, so it would be interesting to see how the markets fare on Monday.  

Looking at the weekly chart of the DOW and assuming I am correct about the potential formation of a head and shoulders pattern, we should see an uptrend in the short run until we peak back and then pull pack to check the support at the neckline.

Again, this is mere speculation until the market actually does form the pattern.  We could just turn around and go up as easily. 

Side Note:  Real Estate thoughts
I have been wondering about a potential side effect on the resort real estate market.  There are a lot of people who are upside down in their mortgages on Florida property.  With the oil beginning to show up on the Florida beaches, does it mean that property values will drop farther in the short term?  With people canceling their vacation reservations, the owners who are relying on the rental income to pay for the condo fees, etc. will be farther in the hole.  This could bring more foreclosed properties to market.  The only bright side I see is that majority of the rental income is made around spring break and that time has already come and gone for this year.   Also, hopefully the owners are on the ball and start filing paperwork for lost revenue against BP but there is no telling when (and if ever) they will get paid.  If you are in the market for some vacation property, this could be the opportunity you have been waiting for (buy when no one else wants to).  That even brings up an even more interesting question.  Should you be looking for cheap lots in Detroit that you can turn into a green plot and sit on for a few years to see if Detroit can recover?  With the auto makers making profits now, maybe the Detroit economy will recover.