Of course the rally was over--last week. Before the market opened Friday, Steve indicated as much in the Commentary. After Monday's triple-digit loss, we saw another 100 point drop in the Dow today. The NASDAQ was off 20 points. Both indexes are down more than 3% since the opening bell Monday morning.
So what's next?
The long-term indicator is still rising. The intermediate indicator is in the upper reversal zone. Both the short-term and momentum lines have been in phase, lock-stepping deep into the lower reversal zone.
The new chart Steve included in the website shows our 3 critical moving averages (5, 30 and 50) along with volume. This should be VERY useful in helping us visualize the written recommendations:
Today the market closed down just below the 30-day moving average. Will the short-term and momentum cycles set up for a nice bounce? I'm looking forward to the market open. It should be a great trading day Wednesday.
