8-7-2011 Market Indicator Change Alert

The conditions on Friday will repeat for Monday:  For the next day, the Major Market indicators (#1 and #2) will both stay on “UP” as long as the market closes over S&P 500 1195.   With any CLOSE of the S&P below 1195 both indicators move to “DOWN”.  Give the “volatile” situation over the last week I have substantially reduced my holdings in stock funds.

The market is very close to a short-term bounce up; if the Major Market indicator #2 does move to “DOWN”, it will likely reverse back to “UP” in 1-3 days.

At the time of this writing Sunday evening Eastern US time the Dow & S&P500 futures are down substancially, indicating a large market drop at the open on Monday.  It’s possible the market may bounce after opening down.