5-20-10 Warning-Indicators 1-2

This post is an outdated message kept for historical reference – please refer to the more recent post for an update on indicator #2:

We’re in “no man’s land” as of Thursday 5/20/10 – Indicators #1 and #2 are likely to move to DOWN with a further S&P 500 move downward, or both Indicators #1 & #2 will move to new UP signals with enough of a higher move.

Timing Indicator Change Alert

The Major Market Timing Indicator #1 may change to “DOWN” with a S&P 500 close below 1059 on Friday 5/21/10.  The publisher would partially move to cash funds at 3:45PM on Friday with a close below 1059 if he were managing funds with Indicator #1.  (The publisher is currently using Indicator #2 to manage all of his positions).

The Major Market Timing Indicator #2 remains on “HOLD/REDUCE”, a “reduced risk position” where downward moves are expected.  The Nasdaq 100 is now down 10.3% since the 4/27/10 change from “UP” to “HOLD/REDUCE”.  Indicator #2 may move to “DOWN” with a continued S&P 500 drop–stay tuned for further updates.

The market is near a point where a significant bounce higher is likely despite the large risk of a change to “DOWN”.   Markets don’t go straight down, and typically do bounce higher after a sustained move downward.

Risk is heightened and the market outlook uncertain given the annual “calendar-based” market drop risk in May-June,  the Europe financial crisis, the banks new fear to lend, and the problems with the companies involved in the Gulf of Mexico oil disaster.

An e-mail notice will be sent to registered users if an indicator DOES change.  Please check this page for new alerts and warnings – an alert e-mail will not be sent for further postings if an indicator does NOT change.

Please don’t hesitate to ask questions by sending an e-mail to mailto:info@401ktrend.com.