The DOW and S&P are possibly making their highs now and if not now sometime in June/July per the cycle moves.
That sets up for another leg down of some magnitude.
If S&P 1450 gets taken out, then this could lead to more upside and the downside was met.
If you see it trade below 1350 and more specifically 1250, then this 'could' be a major major move down that 'could', and I stress 'could', be the setup for a lower low than that of 2002. That means lower than 750 and DOW < 7200. Ouch!
Really, all the signs are there for that to happen. But it doesn't mean it will.
Whatever happens it's not going to be a fun market for years to come. You probably won't see any major move up in a new secular bull market move until probably 2011 to 2012. So, the best you can hope for now is to see a more sideways range in the indexes and not a major move down.
But, who knows.
That's why I say to roll collars like my HAL trade.
