08-26-2007, 09:43 AM
Wish I could concur that a bull correction happened and is over. I moved into bonds when the market (Dow) hit 13900 and I will stay there for a while. The indexes all confirmed monthly highs (July). The high this week is lower than the last high (week of 8/10), which was lower than the previous high ( all time high (week of 7/20). Expect this pattern to continue unless the market makes a weekly high higher than the last confirmed weekly high, which just occured. Even then it would have to take out the all time high to signal a reversal. I doubt that the highs of Friday, either in the futures or cash markets, will be exceeded. If so, it may be short lived. Again, I sincerely hope you hold your gains. It just appears obvious that the bull run that started in March 2003 has ended. Note that there were many big downs since 2003, but the overall trend (big picture) was up because each major weekly confirmed low was higher than the previous confirmed low. The picture now is lower highs, not higher lows.
Mahalo,
Mling
Mahalo,
Mling