Tuesday, March 22, 2011

3/22 9:45

Only 4 days left until the start of the cycle.  The initial decline from 3/25 through 4/6 will occur while the headwinds of monetary ease are blowing so the decline will probably not be large.  If my count is right then there is a nominal new high ahead and the initial decline will be a first wave.  However, if the stock market does not make new highs by the close Friday then the decline will be a third wave.
Before the market can run it needs to escape the 50-day M/A, which lies just overhead.
My count is that the DJI and SPX are in iv of (iii) up. 

2 comments:

  1. Steve,

    If I understand correctly, if you had longer term long-stock positions, you would be exiting them on Friday?

    Thanks,
    Dan

    ReplyDelete
  2. Dan. Absolutely.

    ReplyDelete