Today’s action is consistent with our March
29th BEAR call, then advising people to sell any rally. The market popped a
few points, before dropping over 500 points.
As we approach prior support, we may see some buying interest come back into
the market around 10,000 on the DJIA (Nasdaq 1920) — not because its a
significant psychological number (its not) but because thats where we held the
fort last time.
Even if 10,000 or 1920 holds, we would still advise anyone who missed the
last opportunity to sell to do so on any move back towards the 10,400 Dow or
I do not think the market has fully discounted slowing GDP, Inflation, rising
rates and oil yet. My previous June/July period for a 2005 new low remains in
Once we enter that period, I would look to see what was cheap or outrageously
oversold. For now, its apparent that the market is finally wrapping its head
around some of the issues we have been concerned about.