His call for this week (but read the full missive) in very short:
So far the “buying stampede” is still in force since there have been no pauses/corrections that have lasted more than 1 – 3 sessions. As often stated, that is typical of such skeins. But, it is session 21 in the stampede and the equity markets are very overbought as can be seen in the attendant chart. Consequently, we are again cautious. If I could script the action from here, it would call for a “trading high” this week followed by a pullback, which holds above last Monday’s (3-30-09) intraday low of 779.81 (basis the SPX), and then a re-rally. In that re-rally, if the SPX fails to trade to higher highs, it would be a large red warning flag.
Consider as a probability!
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