"Ideal" 16 wk cycle low was today

Extremely stretched market, but the momentum is still increasing to the downside. These tend to stretch the cycle lows longer...

I think the reversal out of these extremes will be also very violent, but the first bounces will be sold.

I think Fed will have to step in with a purchasing program next week...

Best of luck.

The 1040 low should be taken before a substantial bounce happens tomorrow. Certainly 20 points lower from today's close is not too far. I think it will be a good place for a sharp reversal as anywhere else, I will buy there. I think June 2009 top around 950-970 will be a better support going forward, but this may not happen until later this summer. Ultimately, the market is going much lower into 2011...

No matter what happens on the bounce (that is due and over due), it is just the prelude to the next leg down. Stay loose. This is making a mess of Terry Laundry's timetable I think. I am lost in his rubric. Best, Islander.