Hi everyone. If you haven’t read my analysis of 4/16/2009, “Where is the Stock Market Heading,” please do, because that will explain my overall opinion of the market.

OK, so lets get to it. We are in a Bear Market, so yesterday’s market action is consistant with that. In my post of 4/16, I gave some potential objectives to the upside. That is not to say that we will get there, it is simply a statement that given a Bear Market, and given a rally started, those could be the objectives to the upside if there is truly strength in the market. Now ysterdays hit does show that there is a lot of market weakness. The weakness came in before we even tested the highs of 1/6/09. That does not bode well for moving higher in the immediate future. In fact at this point we are more likely to test the lows of approx 740 set on 11/21/08 than then the objectives I mentioned to the upside. If that breaks, then look for a new leg down. This morning is showing some pre-market weakness, so unless something unusual happens, I would expect to see more selling, or just less buying, over the next seveal days.

The Bear is alive and well!!

John Pisanchik

4/21/2009

Filed under: Market Opinions

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