8-8-2011 Stop Loss “DOWN” in Indicator 1 and Indicator 2

Both indicator 1 and 2 are now confirmed on “DOWN” due to breaking our stop loss level of 1248 and the subsequent close below 1195.

Very short term indicators and medium term indicators are indicating a rebound move up is coming in the next 1-4 days. The market may fall further first, but will then bounce (typically the market bounces up substantially after a large move down).

In fact, Major Market Indicator #2 will move to UP pending on Tuesday. While I have moved 90%+ of my holdings to cash after the S&P 500 dropped below our “stop loss” level of 1248, I am now keeping my remaining stock fund positions in anticipation of the rebound.

Please check back Tuesday and Wednesday for further alerts on Indicator #2.