Market Update

On March 10th we wrote:
The SPX broke out of the triangle to the downside and we are now challenging the 55 DMA...
and it looks similar to late November early December...But is it?
Seeing two options here...One, we find some support and turn up and the rally continues or, two, we find support, turn up and we bounce off of the lower triangle trend channel and continue going down...

Based on our previous posts of a correction in March, today we are favoring the latter scenario...Let's watch and see how the pattern develops...

Today:
We now know that we broke through the 55 DMA and we did not bounce off of it...

From our previous post suggesting a correction in to the end of March +/- and then a rally in to Mid May +/-...We still think that this is possible...Also possible is a bounce from wherever this pullback finds support...

As discussed several times, trying to forecast what the market will do and when it will do it is a blast especially if it turns out right...But the market will do what ever it wants to do when ever it wants to do it...So I still prefer to use Trend following signals to buy and sell the market...Trend Following does not pick tops and bottoms and occasionally can get whip sawed when in a trading range...But when in a trending market it will keep you in the trend...

Note that our last signal was a sell signal on February 22,2011...


Past performance is not indicative of future results.