Friday 03/23/07 FRIDAY MORNING UPDATE at 09:51 AM EST Thursday saw prices stall near the gap bottoms we have been watching. It will be necessary for these gaps to close to indicate that we have an "all clear" signal. Yesterday's trading was also on light volume once again, indicating the required pause after the 3 day rally which culminated on bullish interpretation of the FOMC minutes. Odds have increased that the bottom has been set for this round of corrections but there is no real impetous for a strong surge. That will take either some time or an event that can be used as an excuse for continued enthusiasm. Where that will come from is impossible to say at this point. It could be from earnings which begin again in 3 weeks or some analysis that increases the odds of a rate cut, which does seem to be in the cards for early summer. In any event...if you are out of the market, pace yourself getting back in and if already in there is no reason to liquidate, but you do need to analyze the stocks you are in to make sure your original reason for purchase is still valid. Our short term indicators are still in the orange (warning) zone, but they are showing some improvement and I will update and post here this weekend. Henry Ford
Edited by Rogerdodger, 23 March 2007 - 11:16 AM.
