Bear Trap explanation on Dow intra day chart of 11 jun 2010

Dow was moving to south ...fear and panic was every where ...post trading session was under progress...5 Minute moving average crossed 50 and 20 minutes moving averages ..MACD was just penetrated zero line ...RSI was  continuously moving to south east direction ...5,15 hrs of trading session was almost over ....check arrows are indicating the trend ...looking like ...break down may be there .....after 3 hrs of range bound trade ...and many experts shorted here .......excellent short selling opportunity  ...???

but what happened all shorter's are trapped in minutes ... before that one could under stand ...Dow was on upside break out ... and Dow moved 100 + points in only 1.40 hour ...and closed above 10211.00 ....

and the reason given was ....

"Stocks rose in a late rally on Friday as a strong forecast from a chip maker lifted tech shares and helped alleviate concerns about the economy's health after an unexpected drop in retail sales.

National Semiconductor Corp  rose 5 percent to $14.21 a day after it forecast margins and revenues above estimates after a horrible 2009 . The Philadelphia Semiconductor index rose 1.4 percent.

"The macro news has been increasingly negative, but you still have some companies reporting good forecasts, and people start to think (selling) got a bit overdone," said Doug Roberts, chief investment strategist at ChannelCapitalResearch.com in Shrewsbury, New Jersey.

"National Semiconductor made a positive announcement. That's why you're seeing the strength primarily in tech," he said.

Even so, the volume was lackluster, indicating little conviction that the advance will continue next week"  

Source ..http://finance.yahoo.com/news/Wall-Street-climbs-in-late-rb-746627151.html?x=0&.v=19

.please have a look ...

index Value: 10,211.07 Trade Time: Jun 11 Change:  38.54 (0.38%) Prev Close: 10,172.53 Open: 10,166.78 Day's Range: 10,082.71 - 10,215.98 52wk Range: 8,057.57 - 11,309.00

So It is called Bear trap ...but technically sound traders  were seeing the move carefully  and knew the fact and they were safe...  kept them away from short selling .......what were the technical reasons were present  in charts ... were saved them ....do u know ????

Please mail  your answer to ..........dhanvarsha-owner@yahoogroups.co.in