The anticipated test of the $120 level happened this week. Unfortunately, that test failed and the market has moved to new relative lows. The bear market shall go on for at least a little while longer. As the chart above indicates, we are comfortably within a massive weekly downward pointing channel that began almost one year ago. One encouraging development, we have hit the bottom channel line with today's sell off. Should we close below that important line we could be setting up for an even more extreme correction. Further bank failures, political ineptness or even international brinkmanship may precipitate such a scenario. Should that scenario play out, one ought to expect the market to move down into the$108 area. [bear flag target calculation: ($143.58 - $120.02) - $131.51].
Lets keep our proverbial fingers crosses, aren't we all a little tired of falling prices....
That's all for this week,
Brian Beamish FCSI
the_rational_investor@yahoo.com
the-rational-investor.com
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