Clive Corcoran writes that as the banking index (^BKX) illustrates, there has still been no decisive change to the notion that rallies are being used by traders and fund managers to exit short-term trading positions.

The S&P 500 (^SPX) has completed a substantial portion of the recovery that Clive Corcoran has anticipated, and traders could see a consolidation effort before the next attempt to regain the 1060-1070 level.

Sector funds that provide insights into the fixed income markets are very much at the top of Clive Corcoran's focus list at present.

Clive Corcoran writes that the DJIA looks as though it will try to re-attain the intraday high from October 14, and the 10,000 level could even be on the radar screens before Friday's data.

The chart for Goldman Sachs (GS) reinforces the view that Clive Corcoran has expressed several times that, for even the most blue chip names in the financial services, there needs to be a fundamental re-thinking of their long-term value.

Clive Corcoran suggests that the DJIA could see a re-test of the 10,000 level while the bears sit on the sidelines waiting for re-entry opportunities.

Clive Corcoran notes that in the near term there is some technical evidence, reinforced by the action in the Asian and European markets on Tuesday, that the massively oversold condition of major indices could be ready to give way to a tradable rally.

How long will it take to recover? In Clive Corcoran's estimation a lot will depend on how deep are the anger and the feelings of distrust that ordinary folks have for the institutional framework that provided no checks and balances on the excesses.

The chart for XLY is worth monitoring in the next few sessions for evidence as to whether the markets can stabilize in the vicinity of the lows seen during 2002.

TTH, a sector fund for telecom stocks, appears to have shown its hand as it slips below a congestion triangle on substantial volume.