JTH

Good Morning

A higher close was had on Tuesday, therefore the Positive Friday & Monday Indicator executed successfully.. From Monday’s blog I wrote

“Looking ahead, I expect this market to resume prices to the upside within the next few days, but I do not expect the markets to make new 52 week higher highs because of the technical damage. From my perspective the downtrend remains intact under 1575 and I wouldn’t be surprised if we started to develop a 1550-1575 trading channel. Anything south of 1530 and I may eject.”

With 1575 broken, today’s action showed we have the ability to reach 1590, so that’s my next area of key resistance. Based off the charts and law of averages, I expect the tomorrow to close positive with tomorrow or Thursday having high potential to be a peak, possible a long-term peak. Basically, before we make a yearly high, I think we will visit the Tweak Flash Crash level at 1563 or lower one more time.


The projection chart below shows a positive bias for this Wednesday, based off Monday & Tuesday’s close.

Attachment 23494



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Over the last 25 Wednesdays, 12 have closed flat, based off this data I’d project this Wednesday will close .50% +/- .10%

Attachment 23492



Tis the season to protect the gains, this April is the last of the best 6 cumulative months of the year, I’m in the positive for the month for the 2^nd CORRECTION: I'm under in TSP MTD, above in terms of the Wilshire 4500. time so if we get a strong day tomorrow to the upside, then I’ll be tempted to make an exit, but I’d rather exit on 2-3 May.



Trade safe…Jason

---------------------DISCLAIMER--------------------
The majority of this data is based off the S&P 500's past prices, typically over the last 20 years. If this data does not come from the S&P 500, then I will state what index it is derived from, otherwise assume it is of the same source. While most of the data is computer generated, much of it is still done by hand and is therefore subject to the occasional human error. Past data does not guarantee future results! We are all grownups here so we should already know we are each individually responsible for our own accounts, so if it doesn't work out, it's your own fault. Occasional I get PMs from newer members, asking me what to do with their accounts, so here's my answer. Find out what DCA is then do it for a long time. In the meantime read, read, read, then practice what you read, then figure out where you screwed up, then start the process all over again.