SPECIAL MARKET UPDATE

DEAR READERS,

My best wishes go out to our friends in England as our hearts are heavy with your losses.

Market reaction is of course not bullish in reaction to today's events, but it hasn't been an all out panic neither. I do not expect this horrific terrorist act to change the complexion of the world economies.

Could it hasten the coming correction we have been discussing? well of course it could, but understand it was ALREADY in motion as others will say it was oil or it was this tragic act of violence.

Volume so far is not blowout, more sedate than one would imagine, those bullish will not change their minds over this, but figure it a buying opportunity.

Those of us concerned with dividend yields and valuations have either been severely picky about longs or on sidelines in cash of treasuries and maybe some gold.

Puts out numbering calls and VIX rising, but FAR from signaling any kind of emotional crescendo.

EWT thinks a 3rd of a 3rd wave has begun with STRONG declines possible during its duration.

It is IMHO, VERY LIKELY the TOP is already in this cyclical bull market, Bob Brinker and others disagree. I respect those dissenting opinions.....but I also know what other bear bottoms looked like. lest us not forget that.

Let's not jump to any conclusions just yet, let's watch the action and volume, with Richard Russell's PTI still in bullish reading, anything is posisble.

I see where yields have risen back above 4% recovering some half of thier gains, and I wonder if for the short term we have seen the lows in yields....this yet to be determined.

Duratek