We got the pullback that I had indicated would occur. The question now is the duration and magnitude of the bearish move. The first line of defense on all three indexes is the 20 simple moving average which has acted as marvelous support since late August. A definitive close below this key moving average on volume will bode for further bearish sentiment. I feel that we will find support sooner than later and we will bounce back and resume the Bullish Trend. Make it a great day! Robin

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Fundamental events, as indicated last week in my analysis, had the potential to drive the market bullishly to test the April highs and that is exactly what happened. We are slightly above resistance and I feel the next move is to retrace to test old resistance which has now become new support. If we bounce we could be on for a more sustained bullish run. If support doesn’t hold, we will move back into a channel and trade there for awhile. It is likely that the markets will languish a bit as the move on Thursday resulting from the QE2 announcement moved the indexes outside of the upper Bollinger Band. When that happens almost always price action slows or retraces. I feel that it is now more likely that we will get a bounce and move higher after a short term pullback to retest the aforementioned support.

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Very little movement this week. We are just shy of the April highs and the market appears to be looking for direction. Next week could provide several catalyst events to move the markets. The elections, the Fed Meeting and QE2 as well as the nonfarm payroll report on Friday. Mix all that up with the recent terror concerns and you could have a recipe for stock market movement. My sense is that we are going down after a nice run up.

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We are beginning to flatten into a flag on the indexes. I feel there is enough strength in the market to retest the April highs but that area should pose formidable resistance. I would have expected more movement in the market due to earnings season. I feel the lack of conviction in the investment community is testament to an impending pullback. Next week is a heavy reporting week so we shall see if there are any market movers. Once the April highs are reached, look for the market to reverse

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