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I'm not at all sure that the decline is over, however I think it may be
over for a few days as a number of the indexes reached areas of support
confluence. We had 6:1 down volume on NYSE and 9:1 on NASDAQ and these
levels can be near extreme. I covered my ES and NQ shorts just before the close
Friday and went flat as I think odds are good for a bounce on Monday. I will be
looking to put those shorts back on any rally here.
In the bigger picture, major trendlines from the March 2003 lows were taken
out in all major indexes confirming the severity of the break. That TL was
important enough that I would not be surprised to see it re-tested from
underneath. The volume on Friday's decline was very heavy so I would expect, at
a minimum, that any rally will have to retest the lows. My view, at the moment,
is that the market is signaling the high probability of a recession late this
year.
Earl
----- Original Message -----
Sent: Saturday, April 16, 2005 7:28
AM
Subject: [RT] Worst week over
The worst week of the year is over. Am I talking about the
markets? No - I'm
talking about TAX Deadline week but it could be true for
the markets as
well. My Total Market Model reversed to bullish mode on
Friday and there are
a huge number of stocks signaling a reversal for
Monday-Tuesday so my guess
is we have relieved most of the selling pressure
and given any kind of
positive impulses, we will see an up market next
week..
In the DOW 30 I would be shorting JNJ,MRK, PFE & PG and buying
the rest. The
NASDAQ should also be strong next week.
Good
trading.
Jim White
PivotTrader.com
Home of the Near Impulse
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