WEEKEND REVIEW

Divergence still in place, I am still expecting a retrace to begin shortly. SOme other divergences are beginning to appear, 120 SPX points since the new low was registered, go figure!

This HISTORIC action in the form of unrelenting down and up action, 90% volume days will in the end cause another million or so investors to never put money into stocks again.

1300 SPX or above is possible, at the break of 1100, BEARS were roaring, obviously TOO MUCH. The market basically breaks down into waves of sentiment, and when they reach extremes...like the EURO SKY is falling, and the break BELOW the trading range.....eager bears, especially newbie bears were RIPE for the slaughter.

What you see now is NOT a statement on the economy or earnings, it is a rush to cover by those short a bit too long, and it may have a bit more to go. Then there will be MANY long converts, and if it goes too far north, then you could see an EPIC decline swell when the gas is gone..especially when many see the smoke lift and the anemic FED FED party cannot go on forever.

D