SOMETHING WICKED THIS WAY COMES

Nasty reversal day Friday, as it turns out was ANOTHER 90% plus DOWN volume day. As such it may unleash a short term market rebound of which we will monitor the strength....usually lasting a few days to about a week.

The decline so far, feels intense, but it has not taken out on the SPX its OCT lows and is where I established my support BLUE LINE.

That said 1060-1065 is now established as RESISTANCE with its rejection Friday, and that is what I used to take my contrary position Friday for which I was rewarded and now closed out as I posted.

I don't know yet if I will join the other team for a day to catch the pity rebound, I don't think this reaction selling is over yet and it may have been saying, we don't believe your GDP # we REPUDIATE it.

Is the rally from MArch STILL ALIVE? I can be bearish and leave that door open. The strength of the March reaction has convinced some of my trusted resources to conclude this is a primary reaction rally which may have 3 phases. First may be nearing its end, then 2nd phase would require weeding out the dullards and focusing on what is working and this in uptrend.

I don't agree however, I may not agree to sell all, but raising cash levels I think would be a good idea. there are quite afew things that don't jive with historical and reliable indictors, so one that tells me there is no top indicator as yet, may also be unreliable.

SAFETY COME FIRST IMHO, NOT PROFITS.

From historical perspectives the market is overvalued and dividend yields under 2% are pathetic.

The market may decide to rally to new highs for apparently NO REASON at all. I DO NOT have BEAR MKT TA SELL SIGNALS AS YET, these could come, the market appears to have rolled over, but we don't know yet if the BEAR is going to growl in style just yet.

Lots of money sloshing around and almost no place to go safe that provides much YIELD at all.

A VIX hat can rise to 31 in short order is reminder to longs this is NO ONE WAY STREET and buying LOW in MARCH is one thing, buying HIGH and chasing MOMO comes with different set of risk.

MONDAY SET UP....I see couple of possibilities #1 FREAKED OUT MKT capitulates and prices cascade below 1020-1025 area of support I drew. #2 Price fall at open and HOLD THE LINE or rise from get go.....a FALL at open to that line that holds.....would give me my lower risk set up to go long and use are below as STOP LOSS #3 Prices rally in AM to SUCK IN longs then BAMM comes the fade and test of support......that's my game plan.....I think LOWER prices are in order, but some reaction to the 90% FRIDAY may also be in order first.

D