Did That Dog Bark?

In a previous post I discussed a particular kind of clue which points to the direction of a market's trend : the dog that didn't bark.

Yesterday markets in the US opened to news about the terrorist bombing in London. Normally this should send stocks down and bonds up. The news did just that - for an hour or so. But then the markets reversed direction and ended up where they had closed the previous day (plus or minus a little bit).

This response to the news is evidence that the short term trend is stocks is still upward and in bonds and notes is still downward.