I'm going to paste what was said tonight. I'm not going to do this very much because I don't want someone complaining about it to them. But I think tonight's update was very interesting...
Because we believe the market is at such a critical juncture, we are again attaching charts to today's update to show you where the market stands on an updated version. To refresh your memory, the rising line is a rising trendline drawn from the exact low of October 11th, 1990 through the exact low of December 9th, 1994. The descending line is an exact trendline from the low of August 16th, 2007 through the low of January 23rd, 2008. The importance of this line is enriched because a parallel line drawn above it through the all-time high in October 2007 virtually exactly intersects the May 19th, 2008 high which was the high for the year last year. As you note from the chart, neither of those lines has been fully met although they have been very closely approached. They do not have to be met, of course, but based on where the market is and what our readings tell us there could be a dramatic reaction in one direction or the other very quickly from these levels. We feel strongly the move will be to the downside.
There is another turning point pattern of potential importance which was due to resolve today with a margin of error of a day or two at the most. The second chart attached to today's update shows this turning point pattern of 104 trading days. The most recent dates of resolution beginning at the all-time high close of October 9th, 2008, with the next date at March 10th, 2008 (in a strong down year, that closing low held for the next four months). After that came August 6th, 2008, a date which showed the greatest margin of error being early by three days but the subsequent decline from there was dramatic. The next resolution was due on January 5th, 2009, and that was a virtual bull's-eye preceding another dramatic market decline over the next two months. The next resolution is due today, June 4th ± a day or two.
If the market decides on a final spurt before what could be a dramatic decline, the two lines in the chart will be between 951.80-957 tomorrow. In fact, unless the market starts down immediately and hard in the morning, there will be a projection up to around the 956 area from the intraday projection charts.
